Google, company which belongs to Alphabet Inc., is currently buying the Apigee Corp software company. The price for the transaction is $625 million, which is a good price for what Google is trying to do, to have more success to corporate customers. This amount means that Google is paying $17.40 for one share at Apigee.
If you haven’t heard of it until now, Apigee is focused on developing APIs, which comes from Application Programming Interfaces. This type of software is becoming more and more important in today’s commerce since they are basically conductors for automated communications between companies and customers or partners.
Let’s say that you buy a blouse on a mobile app. The app uses an API in order to send the order to the retailer. In its turn, the retailer’s computer uses again APIs to connect to their shippers and suppliers. And even if you don’t buy it online, for instance doctors can send an order to a pharmacy through an app which works on an API.
Apigee has been collaborating with some pretty big names in the industry, such as Walgreens Co., Burberry Group PLC, AT&T Inc. and others. Each of them gives Apigee less than a cent for every tapping on the API, so you can tell that they have great profit.
Diane Greene, who works as head of the enterprise-cloud business at Google, declared on Thursday that many companies reported significantly increased sales after they turned on the APIs. She also added that this purchase means that Google is interested in targeting more the enterprises and offering them more developed services than they did until now.
Ever since November, when Ms. Greene got hired, Google insisted on making more and more efforts in order to attract more companies and help them run their businesses and store data.