Blog Coverage Alphabet Acquires Apigee for $625 Million

LONDON, UK / ACCESSWIRE / September 9, 2016 / Active Wall St. blog coverage looks at the headline from Alphabet Inc.’s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google announced on September 08th, 2016, that it is acquiring cloud software company Apigee Corp. (NASDAQ: APIC) in a deal valued at about $625 million. This is the tech giant’s latest move to bolster its cloud based offerings. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

Today, AWS is promoting its blog coverage on GOOG, GOOGL, and APIC. Get all of our free blog coverage and more by clicking on the link below:

http://www.activewallst.com/registration-3/?symbol=GOOGL

http://www.activewallst.com/registration-3/?symbol=APIC

Google will acquire Apigee for $17.40 per share in cash, a 6.5% premium to Apigee’s closing price on September 07th, 2016. The transaction is subject to the satisfaction of customary closing conditions, including Apigee’s stockholder endorsement and applicable regulatory approvals. The companies expect the transaction to close by the end of 2016.

The API Deal

Apigee specializes in Application Programming Interfaces, or APIs, through which digital services connect when a company logs a purchase for a customer or places an order with a supplier. APIs allow the company’s backend services to talk to the mobile and web-based apps used by their customers and partners.

Apigee counts among its customers Walgreens Boots Alliance Inc., AT&T Inc., Live Nation Entertainment Inc., and Burberry Group PLC. Apigee went public in April 2015 at $17 per share raising about $87 million.

The Strategic Fit

“The addition of Apigee’s API solutions to Google cloud will accelerate our customers’ move to supporting their businesses with high quality digital interactions,” Diane Greene, senior vice president of Google’s cloud business, said in a blog post.

Greene, a former VMware CEO, joined Google cloud in November, 2015, has pushed to raise Google’s profile in corporate computing.

Chet Kapoor, Apigee’s CEO said of the deal:

“Google is the open cloud provider committed to delivering new software for not only hybrid-cloud environments, but also for the multi-cloud world,”
Kapoor also added:

“With their history of innovation in web and mobile technologies, we believe Google is the partner for companies embarking on digital transformation.”

Support in the Sky

Google is betting its hope on the enterprise-cloud business to become a major revenue driver over the next several years, having lagged behind Amazon.com Inc. and Microsoft Corp. in selling its cloud computing offerings to enterprises. The Apigee acquisition will provide support to Google’s own set of APIs, working on pulling information from YouTube as well as the Translate and Maps software to imbed in their own apps.

“The addition of Apigee’s API solutions to Google cloud will accelerate our customers’ move to supporting their businesses with high quality digital interactions,” Green said in the blog post. Google will also be able to utilize the relationship of Apigee’s large client-base to offer its own cloud based products.

Stock Performance

Following the announcement of the news, Apigee’s shares surged 6.55% to close at $17.41, slightly above the transacted price and also marginally higher than its IPO price. A total of 4.5 million of the company’s share were exchanged during the trading session. Apigee’s share price has more than doubled since the beginning of the year, as it advanced 116.81% during that period.

Alphabet’s Class C (GOOG) share price declined marginally by 0.64% to close at $775.32; while its Class A (GOOGL) stock finished the trading session at $802.84, down by 0.64%.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 445037