Come Thursday, Alphabet Inc’s Google will acquire could software company, Apigee Corp said to be worth about $625 million. This is the technology giant’s latest move to claim a domineering share of the cloud business.
Apigee’s software based in San Jose helps businesses with their digital services through apps made to communicate with partners and customers alike.
In an interview, the lady in charge of Google’s cloud computing division, Diane Green, said: “They are a leader in this application programming interface area.”
The most popular means of storing, managing and processing data is cloud computing.
It is Apigee’s work to manage the interfaces of these applications or API, which is the means through which the connection between digital services and a company’s customers places an order for a supply.
A 6.5 percent premium stock as at Wednesday stock close amounting to $17.40 for each share is what Google will pay Apigee shareholders.
The offer price of $17.43 on Nasdaq is slightly lower than Apigee’s shares on Thursday afternoon trading.
Customer of the company which includes – Burberry Group Plc, AT&T, World Bank and Vodafone Group Plc as at April last year went public at $17 per share.
Green, who is also a former CEO of VMware made efforts to raise Google’s profile when it comes to corporate computing since she joined them last year.
Sundar Pichai, Google Chief Executive Officer, said it was during Diane’s tenure that Google streamlined engineering efforts and also appointed new management for its cloud efforts which was also aimed at improving traction with clients.
Green had predicted that acquiring Apigee would double Google’s momentum.
She said: “Our customer lists are extremely complimentary.”There’s some overlap and some areas where we are going to be able to help each other once [the deal] closes.”
This acquisition is coming barely a day after an announcement from Google and Box – an online storage company that they were going into partnership to allow Box’s customers combine their application with Google’s tools.
Other companies apart from Google that are interested in the cloud computing business include Amazon.com Inc, IBM Corp and Microsoft Corp.
An analyst from Moor Insights & Strategy, Patrick Moorhead, said acquisition of Apigee is what Google needs to close in on competition.
In an email he wrote, he said: “Google has fallen behind both Microsoft Azure and Amazon Web Services in enterprise cloud computing, and this move is intended to strengthen that position.”