Google has announced on Thursday, Sept. 8, the acquisition of company Apigee, in a deal valued at $625 million. The deal will close by the end of the current fiscal year.

Google Buys Apigee

With this new acquisition, Google continues to follow its plans to build out a new-look cloud. The internet search giant plans to compete on the cloud services market with top companies such as Microsoft and Amazon.

Apigee announced the agreement to join Google on its company website.  According to Forbes, Google cloud chief Diane Greene, who will have the Apigee a new unit joining soon her Google Cloud Platform, explained that the Apigee acquisition is related to APIs.

According to her, customers of Google's cloud services are considering APIs as a key function for their business. This is why Google is lo0oking for ways to improve its offer to enterprise customers of tools needed in their digital transformation.

Google has lately tried to raise its cloud profile by bringing in new technology and specialists through acquisition and hiring and investing in reorganizing the unit's structure. The company has know-how in analytics, back-end services and machine learning.

Apigee matches Google's expertise by coming with a full solution in back-end services. Using the company's APIs, customers can decrease time to and market apps.

Apigee chose to sell to Google because Google's cloud platform is committed to an open architecture ecosystem of hybrid and multi-cloud strategies. Customers using this cloud platform can mix and match products from different vendors.

According to Recode, the software tools built by Apigee could help non-tech companies develop apps they couldn't on their own. By integrating Apigee in its own cloud platform, Google will support its nearly year-long effort to reposition the company as a viable enterprise operation. This way, the search giant will have one more entry point to reach corporate clients in its stiff competition with Salesforce, Microsoft and Amazon.