Google will acquire Apigee (NASDAQ: APIC) for $17.40 per share in cash, for a total value of approximately $625 million.
Apigee's Edge API platform helps enterprises to build mobile and digital initiatives using APIs, apps and data. Apigee Insights delivers big data predictive analytics. Apigee says that when used together, its APIs and predictive analytics can create an adaptive cycle of continuous improvement – and the faster an enterprise goes through this cycle, the faster it can innovate, adapt and accelerate its digital business.
Last month, the company released its Apigee Commerce APIx platform, a new software accelerator designed to help companies selling products online jump-start their API-powered digital commerce initiatives. The company also provides its Apigee API Exchange for Telecommunications, an interoperability platform that unifies APIs from disparate operators, enabling developers to easily build industry-wide highly engaging apps.
Apigee is based in San Jose, California. As of May 25th, Apigee reported over 300 customers, up 114 compared to a year earlier. For its 2016 third fiscal quarter ended April 30, 2016, Apigee total revenue of $23.5 million, at the high end of its guidance range of $22.5 million to $23.5 million. Q3 16 total revenue was up 36% compared to $17.3 million in Q3 15.
“We’re excited about adding Apigee to Google,” said Diane Greene, SVP of Google’s cloud businesses. “Companies are moving beyond the traditional ways of communicating like phone calls and visits and instead are communicating programmatically through APIs. APIs allow the company’s backend 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. Apigee easily enables this by providing a comprehensive API platform that supports secure, stable, multi-language, dev, test, publish and analytics capabilities.”