Google to Buy API Firm Apigee for $625 Million--Update
September 08 2016 - 11:11AM
Dow Jones News
By Tess Stynes
Alphabet Inc.'s Google will buy technology-services company
Apigee Corp. in a deal the companies valued at about $625
million.
Google will pay $17.40 a share for company. That is a 6.5%
premium to the Wednesday closing price of Apigee shares, which have
more than doubled in value this year.
Apigee's software helps customers share data and services across
different applications and devices by managing and securing the
interfaces between applications, called Application Programming
Interfaces, or APIs.
Apigee, which went public in 2015, started in 2004 as Sonoa
Systems Inc. with software that enabled applications to directly
communicate. It began managing APIs as mobile devices became more
prominent, and it changed its name to Apigee in 2010.
"Companies are moving beyond the traditional ways of
communicating like phone calls and visits and instead are
communicating programmatically through APIs," Diane Greene, a
Google cloud business executive, said in prepared remarks.
"APIs allow the company's back-end services to talk to the
mobile and web-based apps used by their customers and partners.
Instead of the doctor phoning a prescription into the pharmacy,
they can use an app that talks to the pharmacy through an API," Ms.
Greene stated.
According to a Google blog post, Apigee's technology is used by
major companies including Walgreens, AT&T and Burberry. Google
expects the addition of Apigee to Google cloud will step up
customers' efforts to support their businesses with mobile
applications.
In May, Apigee reported revenue of $66.9 million for the nine
months ended April 30, an increase of 34% from the year earlier
period. At the time, Apigee said it had more than 300 customers,
and increase of 114 customers since the end of the quarter ending
in April of 2015.
Shares of the San Jose, Calif., company rose 6.7% to $17.43 in
early trading on Thursday.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
September 08, 2016 10:56 ET (14:56 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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