Google (GOOG) Is About To Spend $625M On This Software Company

Alphabet Inc.’s Google is looking to increase its offerings to corporate customers and thus has decided that Apigee Corp. would be a good fit. The company will acquire Apigee for about $625 million.

Apigee is involved with Application Programming Interfaces, otherwise known as APIs. APIs act as a channel for companies’ digital systems and their partners and customers to communicate.

The company has an impressive client list that includes AT&T Inc., and Walgreen Co. For the nine months ended April 30th, Apigee reported record revenue of $66.9 million, an increase of 34% from the year-earlier period.

Google will pay $17.40 a share for Apigee which is a 6.5% premium to Wednesday’s closing price. Just this year alone Apigee shares have more than doubled.

“It is stunning how almost every customer is bringing up (APIs) when I’m in meetings,” said Diane Greene, head of Google’s enterprise-cloud business,.

Disclaimer: We have no position in Alphabet Inc Class A (NASDAQ: GOOGL) and have not been compensated for this article.