Google is purchasing Looker for $2.6 billion
Alphabet’s (GOOGL) Google is acquiring Looker, a business intelligence software and data analytics provider, for $2.6 billion. The transaction is expected to close in the coming months, upon which Looker will become a part of Google’s cloud computing business. Looker’s software helps businesses to work with multiple cloud services in what the industry calls a multi-cloud strategy.
Therefore, Google is looking at potential twin benefits from the acquisition of Looker. First, Looker will help Google to provide its cloud customers with a more complete analytics solution. As businesses seek to leverage all their data in order to make more informed decisions, demand for data analytics is on the rise.
Second, Looker will help Google advance its commitment to the multi-cloud strategy, where Google cloud customers will be able to easily access cloud services from other vendors, and cloud customers with other vendors can easily access Google cloud services. Google and Amazon (AMZN) already share a number of cloud customers. For example, Snapchat parent Snap (SNAP) disclosed in regulatory filings before its initial public offering in March 2017 that it would spend $3.0 billion over five years to purchase cloud services from Google and Amazon, Reuters reported.
Google will pay for Looker in cash
Google will pay for the Looker acquisition with cash. Google’s parent Alphabet finished the first quarter with a cash reserve of $113.5 billion, making it one of America’s wealthiest technology conglomerates. Apple, Microsoft (MSFT), and Facebook (FB) finished the first quarter with cash reserves of $225 billion, $131.6 billion, and $45.2 billion, respectively.