Google will swallow Apigee to serve enterprises with APIs

Tech giant pays $625m for $3bn B2B opportunity

Google plans to buy software company Apigee for $625 million as it seeks to improve its enterprise offerings.

The acquisition will see Google paying $17.40 a share for Apigee, a 6.5% premium to its closing price, according to the Wall Street Journal

Apigee, whose shares have more than doubled in value this year, is a provider of application programming interface (API) management. APIs are the mechanism developers use to interface and integrate with outside apps and services, and are vital for how business gets done today in the fast-growing digital and mobile marketplace. 

Apigee is already used by hundreds of companies, including Walgreens, AT&T, Bechtel, Burberry, First Data and Live Nation.

Walgreens, for example, uses Apigee to manage the APIs that enable an ecosystem of partners and developers building apps using Walgreens APIs, including the firm's Photo Prints API, by enabling mobile app developers to include the ability for their app users to print photos at any Walgreens store.

"The benefits of interacting digitally drives a large market opportunity; Forrester predicts that US companies alone will spend nearly $3 billion on API management by 2020," Google said in a blog post announcing the acquisition.

"The addition of Apigee's API solutions to Google cloud will accelerate our customers' move to supporting their businesses with high quality digital interactions. Apigee will make it much easier for the requisite APIs to be implemented and published with excellence."

Apigee recorded revenue of $66.9 million for the nine months ended 30 April , an increase of 34% from the same period the year before. However, the firm also posted a $32 million loss. At the time, Apigee said it had more than 300 customers, an increase of 114 customers since the end of the quarter ending in April of 2015.

Featured Resources

Navigating the new normal: A fast guide to remote working

A smooth transition will support operations for years to come

Download now

Leading the data race

The trends driving the future of data science

Download now

How to create 1:1 customer experiences at scale

Meet the technology capable of delivering the personalisation your customers crave

Download now

How to achieve daily SAP releases

Accelerate the pace of SAP change to support your digital strategy

Download now

Most Popular

16 ways to speed up your laptop
Laptops

16 ways to speed up your laptop

16 Sep 2020
16 ways to speed up your laptop
Laptops

16 ways to speed up your laptop

16 Sep 2020
Windows Server flaw sparks emergency US gov warning
vulnerability

Windows Server flaw sparks emergency US gov warning

21 Sep 2020