On Thursday, Google (NASDAQ: GOOGL) announced that the company will acquire Apigee, a software developer, in a $625 million deal. The service is great for Google to transition into cloud.
"They are a leader in this application programing interface area," said Diane Greene of Google's cloud computing division.
Google will pay Apigee shareholders $17.40 for each share, a 6.5 percent premium to the stock's Wednesday close. Apigee's shares were slightly above the offer price at $17.43 on NASDAQ in afternoon trading on Thursday.
According to Reuters, Google has rationalized engineering efforts and appointed new leadership for its cloud efforts, improving traction with clients, Google Chief Executive Officer Sundar Pichai said during the company's latest earnings call. Greene predicted that the Apigee acquisition would redouble Google's momentum.
"Our customer lists are extremely complimentary," she said. "There's some overlap and some areas where we are going to be able to help each other once the deal closes."
“Google has fallen behind both Microsoft Azure and Amazon Web Services in enterprise cloud computing, and this move is intended to strengthen that position,” he wrote in an email.