Google will be looking to strengthen their cloud business as it goes into final talks with software development firm Apigee Corp over a possible merger worth around $600 million.
Apigee assists companies communicate with their customers using innovative technology focused primarily on mobile devices and web based applications.
“It’s a brave new world when it comes to how businesses interact with their customer base,” said Michael Lane, Global Co-Head of the Investment Management Division at Shizuoka Capital Wealth Management in a phone interview. “Home visits and even phone calls are dated, with API’s taking over more and more these days.”
The announcement regarding the possible deal was made late Thursday afternoon and a short statement included details on the ratios.
Alphabet Inc's Google would give Apigee shareholders $17.42 for each of their shares, representing around a 7 percent premium to the share’s Thursday close, and their stock was trading slightly up on the offer price the next morning.
Apigee have a host of big name clients including Vodafone, AT&T and the World Bank. The company’s IPO was a year ago in May, and shares have jumped half a dollar since then.
Dianne Greene, who is in charge of Google’s cloud unit, has been pushing to make the company a top player in fintech and other corporate computing services, and she was central in a deal only days ago with online cloud storage firm Box Inc which will be used to integrate Google Docs into the cloud.
