NEW YORK (TheStreet) -- Shares of Apigee (APIC) were climbing 6.52% to $17.41 on heavy trading volume midday Thursday after Alphabet's (GOOGL) Google unit agreed to acquire the company in a deal valued at about $625 million.
Google will pay $17.40 per share for the San Jose, CA-based company, representing a 6.5% premium to Apigee's closing price on Wednesday.
The company provides a software platform that allows businesses to design, deploy and scale application program interfaces or APIs.
"Companies are moving beyond the traditional ways of communicating like phone calls and visits and instead are communicating programmatically through APIs," Diane Greene, SVP of Google's cloud businesses, said in a statement.
"APIs allow the company's backend services to talk to the mobile and web-based apps used by their customers and partners. Instead of the doctor phoning a prescription into the pharmacy, they can use an app that talks to the pharmacy through an API," she added.
The companies expect the transaction to close by the end of the year.
Apigee went public in April 2015. Its customers include AT&T (T), Burberry (BURBY), Walgreens Boots Alliance (WBA) and eBay (EBAY).
More than 3 million of Apigee's shares changed hands so far today vs. its average volume of 117,852 shares per day.
Shares of Alphabet were lower in mid-afternoon trading.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on Apigee stock.
This is driven by several weaknesses, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
The area that has been the company's primary weakness has been its feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: APIC