On Thursday, Alphabet Inc’s Google announced that they will acquire a cloud software company Apigee Corp which is valued at nearly to $625 million.This San Jose-based software provides aid to companies with digital services in interacting with applications that are used by the partners and consumers.In order to manage, store and process the data, the use of cloud computing is gaining popularity.
The company that is being acquired specializes in running application programming interfaces or APIs which are the channels that connect via digital services when the company logs a purchase for a buyer or puts an order with a supplier.
Further, google has agreed to pay $17.40 per share to each Apigee shareholders which are 6.5% premium to the stocks closed on Wednesday.
On Thursday, the shares of Apigee were slightly above the proposed price at $17.43 on Nasdaq. The company went public last year in the month of April for $17 per share and has customers such as Burberry Group Plc, Vodafone Group Plc, the World Bank and AT&T.
GOOGLE TO ACQUIRE APIGEE CORP : WHAT DO THE EXPERTS SAY?
Greene, a former VMware CEO, prophesied that the Apigee addition would strengthen Google’s momentum. She claimed that their list of customers is impressively complimentary.
Google, IBM Corp, Amazon.com Inc, Microsoft Corp, and various others are contending for a share of the fast-developing corporate cloud computing business.
Analyst Patrick Moorhead of Moor Insights & Strategy said that with a list of high-profile clients, Apigee will help Google in closing on the competition. He also said that Google has dropped behind both the Amazon Web Services and Microsoft Azure in enterprise cloud computing which will certainly intend to firmly strengthen that position.
Once the online storage company Box Inc and Goggle partner so as to enable the Box’s corporate buyers to question Google Docs that includes spreadsheets, word processing and other productivity tools, the Apigee deal will come after a day.