The parent company of Google, Alphabet Inc., says it has struck a deal to buy the privately-held analytics company, Looker. The $2.6 billion cash acquisition is the first for Google Cloud’s new chief executive, Thomas Kurian.
Looker, a California-based enterprise, was founded in 2012. It employs nearly 800 workers and was successful in raising $281 million in venture capital. In 2018, Looker was valued at $1.6 billion.
Kurian stated in an interview with Reuters that the analytics acquisition will help to fill gaps. Google Cloud and Looker share hundreds of clients, including Hearst Communications. The companies have similar cultures as well.
Kurian told Reuters, “When we looked at how do we broaden our portfolio, (data and analytics), is a segment where we have strength.”
Kurian hopes to win customers with more focused software because competitors typically deal with more generalized tools.
Specifically, Looker’s tools help analysts to calculate high-value customers and revenue. From there, it envisions and simplifies trends in data.
Experts say Looker is one of the best business intelligence tools that has been developed in the era of the cloud. There will be mutual benefits for Google and Looker, but no doubt Google’s resources will bring a lot to the table.
The deal is expected to receive approval by the end of the year. It will be Google’s largest deal since it purchased Nest in 2014 for $3.2 billion.