Google gets API management tools in Apigee deal

The US$625m deal brings the growing market opportunity of API tools to Google

Google plans to acquire API management vendor Apigee in a US$625 million deal that will give the search giant secure and multilanguage API tools used by companies bringing more and more of their services online.

The deal, announced Thursday, gives Google access to tools that allow company back-end systems to communicate with mobile and web apps, Diane Greene, senior vice president of Google's cloud business, said in a blog post.

APIs are "vital for how business gets done today in the fast-growing digital and mobile marketplace," she wrote. "They're the hubs through which companies, partners, and customers interact, whether it's a small business applying online for a loan or a point of sale system sending your warranty information to the manufacturer."

Forrester sees a growing market for API management, with annual spending from U.S. companies quadrupling from $140 million in 2014 to $660 million in 2020.

"The benefits of interacting digitally drives a large market opportunity," Greene wrote. "The transition toward cloud, mobile, and digital interaction with customers and partners via APIs is happening, and fast."

Apigee bills itself as an API management and predictive analytics vendor. Its products include tools to help secure, develop, test, and publish APIs, and its "intelligent API" platform is available as a cloud or an on-premises service.

Among its customers are BBC Worldwide, Walgreens, Staples, AT&T, and eBay.

Google has long had a relatively strong and dynamic API set -- with more than 20 API sets in Apps for Business, for example -- but the Apigee deal helps Google manage dynamic toolsets, said Guy Creese, research vice president for collaboration and content at Gartner.

A "rapid change cadence means developers need a framework for understanding, managing and testing these ever-changing APIs," he added. "This is what Apigee brings to Google -- it’s a solution for managing API changes, whether they come from Google or other technology companies."

Apigee is excited to join Google, CEO Chet Kapoor wrote in a blog post. "We have a solid track record of working hand in hand with some of the largest and most demanding brands in the world to solve new problems and create new products," he said. "We can't wait to see how much better and faster we can be with Google."

The deal, for $17.40 per Apigee share in cash, is subject to shareholder and regulatory approvals. The companies expect the acquisition to close by the end of the year.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments
cmo-xs-promo

Latest Videos

More Videos

Beautiful article.

Hodlbaba

15 brands jumping into NFTs

Read more

"Blue" is really gorgeous and perfectly imitates a human customer support operator. Personally, I won't order a chatbot development for m...

Nate Ginsburg

Why the newest member of BT’s contact centre is a chatbot

Read more

As today’s market changes rapidly, the tools we use change, and it is important to adapt to those changes to continue to succeed in busin...

Anna Duda

Report: 10 digital commerce trends here to stay

Read more

MAN! this is really a well-written article. Anything regarding app development is well addressed in this article. Especially, the way you...

AIA Developers

Mini marketing leader takes group marketing reins at BMW

Read more

Lyre’s and Dohler will not be sued by Arkay Beverages for stealing Arkay’s trade secretshttps://www.openpr.com/news...

Reynald Grattagliano

Lyre's Spirit Co follow up investment injection with global media partnership

Read more

Blog Posts

How the pandemic revealed the antidote to marketing’s image problem

What does marketing truly ‘own’ in most organisations? Brand and campaigns, definitely. Customer experience? That remains contested ground.

Murray Howe

Founder, The Markitects

Still pursuing a 360-degree view of the customer?

On the Internet, nobody knows you’re a dog.” It may have been true in 1993 when this caption to a Peter Steiner cartoon appeared in the New Yorker. But after 30 years online, it’s no longer the case.

Agility in 2022

Only the agile will survive and thrive in this environment and that’s why in 2022, agility will need to be a whole-business priority.

Sam McConnell

Melbourne bureau chief, Alpha Digital

Sign in