Alphabet's Apigee Buy Signals More Aggressive Cloud Ambition, Says Baird

Alphabet's Apigee Buy Signals More Aggressive Cloud Ambition, Says Baird

Shares of Apigee (APIC) were climbing 6.52% to $17.41 on heavy trading volume midday Thursday after Alphabet's (GOOGL) Google unit agreed to acquire the company in a deal valued at about $625 million.

Google will pay Apigee shareholders $17.40 for each share, a 6.5 percent premium to the stock's Wednesday close.

Apigee went public in April previous year at $17 per share.

"The transition toward cloud, mobile and digital interaction with customers and partners via APIs is happening, and fast", Greene said.

Please Wait while comments are loading. "They're the hubs through which companies, partners and customers interact, whether it's a small business applying online for a loan or a point of sale system sending your warranty information to the manufacturer", Diane Greene, senior vice president of Google's cloud business, wrote in a blog post.

Google said it will use the API management techniques to support its enterprise cloud customers using products such as Google App Engine and Google Container Engine.

Forrester sees a growing market for API management, with annual spending from USA companies quadrupling from $140 million in 2014 to $660 million in 2020.

This news should be also particular interest to Mulesoft, another venture-funded startup and "unicorn" that sells application programming interfaces linking cloud applications-frequently services from Salesforce crm , ServiceNow now , and Workday wday -with legacy databases. The search giant said that Apigee will make it much easier for the requisite APIs to be enforced and published with excellence.

Apigee counts Buberry, AT&T, and Walgreens among its clients. Greene joined Mountain View previous year to broaden the company's tool set to appeal to less technically savvy customers.

Adding to Greene's comments, Chet Kapoor, Apigee CEO, describes Apigee's primary business goal as a "mission to connect the world through APIs".

"Many companies understand the importance of using digital technologies to transform business models and processes, but often they pursue digital and cloud independently".