Oracle Corporation (NYSE:ORCL)’s Strategic Acquisition Of Apiary Will Strengthen The Cloud Business Of The Top Nasdaq Stock
Though Oracle Corporation (NYSE:ORCL) did not reveal what amount it paid to acquire Apiary a few weeks ago, the deal is significant because of the strategic value it has for the enterprise software giant. The most obvious is, of course, the fact that the API specialist will offer Oracle the technology it needs to compete in the cloud sector. At present, Oracle is lagging behind the likes of Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT) in this sector.
The reason Oracle needs to succeed in cloud computing is the fact that growth in the traditional software business is slowing down while spending on cloud services is growing at a healthy pace. One of the technologies that Apiary possesses is one that can make it easier and faster for the top Nasdaq stock to develop apps for the company’s cloud customers.
Another factor that made acquiring Apiary appealing for Oracle is the fact that the startup already had firms in the Fortune 500 list that Oracle stood to transform into its cloud customers. Some of these clients include GoPro Inc (NASDAQ:GPRO), salesforce.com, inc. (NYSE:CRM), Viacom, Inc. (NASDAQ:VIAB), and Microsoft.
In acquiring Apiary, Oracle also seemed to be responding to Google’s move to purchase a rival of Apiary – Apigee, in a deal worth $625 million. Other API firms that were recently acquired include Akana which was purchased by Rogue Wave and 3Scale which was acquired by Red Hat Inc (NYSE:RHT).
Data center footprint
Oracle’s acquisition of Apiary also coincided with the enterprise software maker’s decision to add to its data center assets by opening three more centers. Last year, Oracle also acquired other services that were cloud-based such as Logfire, Opower, and NetSuite.
Prior to being acquired by Oracle, the company that was started in 2011 had raised over $8 million. In the latest round of funding, $6.8 million had been raised. Some of those who invested in Apiary included Flybridge Capital Partners, Credo Ventures, and Baseline Ventures. Others included angel investors such as Heroku’s co-founder, James Lindenbaum and Esther Dyson, the chairman of EDventures Holdings.
In Wednesday’s trading, shares of Oracle Corporation rose by 1.13 percent. The top Nasdaq stock closed the day at $42.06.