Alphabet Inc’s Google said on Thursday it is acquiring software developer Apigee Corp in a deal valued at about $625 million, as it strengthens its cloud business.
San Jose-based Apigee’s software helps a company’s back-end services interact with mobile web-based apps used by customers and partners.
The service is critical for businesses transitioning to the cloud, Diane Greene, who runs Google’s cloud computing division, said in an interview. “They are a leader in this application programming interface area,” she said.
Cloud computing is the growing practice of using remote internet servers to store, manage and process data.
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 trading above the offer price at $17.45 on Thursday morning.
The company, whose customers include AT&T, Burberry Group Plc, Vodafone Group Plc and the World Bank, went public in April last year at $17 per share.
The acquisition will prove helpful as Google expands its roster of enterprise clients, Greene said.
“Our customer lists are extremely complimentary,” Greene said. “There’s some overlap and some areas where we are going to be able to help each other once [the deal] closes.”
Greene has been pushing to make Google a central player in corporate computing.
The Apigee deal comes a day after Google and online storage company Box Inc said they would partner to enable Box’s corporate customers to integrate Google’s suite of word processing, spreadsheets and other productivity tools, known as Google Docs.