Google has announced plans to acquire Apigee, a company that offers software for predictive analytics and management of application programming interfaces (APIs).
Google will pay $17.40 per share in cash to acquire the company, representing a total value of around $625 million.
“APIs — the mechanism developers use to interface and integrate with outside apps and services — are vital for how business gets done today in the fast-growing digital and mobile marketplace,” said Google SVP Diane Greene, in a blog post. “The addition of Apigee’s API solutions to Google cloud will accelerate our customers’ move to supporting their businesses with high quality digital interactions. Apigee will make it much easier for the requisite APIs to be implemented and published with excellence.”
Founded in 2004, San Jose-based Apigee went public in April 2015, popping 17 percent on its NASDAQ debut after raising $87 million in the IPO. Its shares were more or less in free-fall until February this year when it hit a $5 low, but it has steadily risen again and as of yesterday was roughly at its IPO level.
Above: Apigee Shares: Peaks and troughs
Apigee counts a number of big-name clients, including Walgreens which uses Apigee to manage the myriad of APIs it offers to third-party developers, such as its Photo Prints API which allows other companies to enable photo-printing features in their own apps.
Basically, APIs allow developers and companies to open up additional revenue opportunities beyond their own closed silos. Indeed, Forrester reckons the API management market will be a $660 million annual industry by 2020.