Google buys ad tech firm Apigee for $625m

Today, we’re excited to announce that Google has entered into a definitive agreement to acquire Apigee, a provider of application programming interface (API) management. 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. 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.

Apigee is already used by hundreds of companies, including Walgreens, AT&T, Bechtel, Burberry, First Data and Live Nation. Walgreens, for example, uses Apigee to manage the APIs that enable an ecosystem of partners and developers building apps using Walgreens APIs, including the Photo Prints API (enabling mobile app developers to include the ability for their app users to print photos at any Walgreens store), and the Prescription API (enabling users to quickly order refills of prescriptions right from their mobile app). The benefits of interacting digitally drives a large market opportunity; Forrester predicts that US companies alone will spend nearly $3 billion on API management by 2020.

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.

Offering a good API goes well beyond having the company develop and publish a performant specification of the interface. A good API needs to support security, give developers the freedom to work in the development environment of their choice and allow the company to continue to innovate its service while supporting a stable interface to the apps and services using the API. Finally, a good API includes testing support and usage analytics to guide the company’s developers.

Apigee’s products handle all of these challenges and that is why the company was recently named a leader in the Gartner Magic Quadrant for Application Services Governance and recognized for its “Completeness of Vision.”

Google cloud customers are already benefitting from no sys-ops dev environments, including Google App Engine and Google Container Engine. Now, with Apigee’s API management platform, they’ll be able to front these secure and scalable services with a simple way to provide the exported APIs.

Looking ahead, Kubernetes will be integrated to help enterprises get better control and visibility into how their internal systems talk to one another, an additional part of deploying services. As always, we’ll make sure that these capabilities are available in the public clouds and can also be used on-premises.

The transition toward cloud, mobile and digital interaction with customers and partners via APIs is happening, and fast. It’s happening because customers of every stripe — in the consumer realm and in the enterprise — are demanding it, and because it translates to engaging and valuable businesses.

We’re thrilled to be bringing these new capabilities to our customers, and we look forward to welcoming the talented Apigee team to Google.