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Google Acquires A data Analytics Company, Looker, For $2.6 Billion

This year, Google had its cloud chief Thomas Kurian approach data analytics company Looker for a potential tie-up. Looker had a similar approach put forth by Silicon Valley’s Frank Quattrone. The Qatalyst Partners has its Quattrone use the investment bank to shop for the potential bidders and attract companies like Amazon and Microsoft. Google has antagonistically approached Looker after gathering around $2.6 Billion as an offer. Kurian has earlier hired loads of employees to handle cloud but it is the first significant move made after becoming the head of Google’s cloud. The purchase of Looker is the third biggest deal for Google in its 21 Years of history. It has successfully beaten Motorola and Nest as well as the cloud business led by VMware co-founder Diane Greene.

Many companies rely on Looker’s business intelligence software for knowing and seeing large amounts of complicated data belonging to marketing and financial planning. For the closure of the deal, Google had to shell out a hefty amount. Looker is expected to earn between $140 million and $180 million this year. Thus, this is forward price-to-sales and most expensive software deal. It is similar to SAP’s acquisition of Qualtrics and Salesforce’s purchase of MuleSoft. Last year, Looker had 600 employees with a net value of about $1.6 Billion.

The investors have wanted Google to make such a deal as Amazon Web Services and Microsoft have been paying huge amounts to maintain their position.  In 2018, Google had 7.6% of the cloud market followed by Microsoft at 13.7% and AWS at 32%. The acquisition could help understand the technology and customers better. Looker hired Qatalyst to silence the market interest. Google signed the deal with the hope of growing in the enterprise. Google Cloud Platform will have multiple products using Looker’s technology. BuzzFeed, Hearst and WPP Essence are few out of its 350 joint customers.