Google announced Thursday that it will acquire LogMeIn’s IoT business, Xively for $50 million that will “complement Google Cloud’s effort to provide a fully managed IoT service.”
In the announcement post, Google said that the acquisition will enable it to step into the growing IoT market, which Google believes will reach 20 billion connected things in the next two years. Xively will enable Google to connect new devices, manage them and transfer data from the devices to other systems.
“This acquisition, subject to closing conditions, will complement Google Cloud’s effort to provide a fully managed IoT service that easily and securely connects, manages and ingests data from globally dispersed devices,” Antony Passemard, head of product management for IoT Pub/Sub at Google Cloud wrote in a blog post.
“Through this acquisition, Cloud IoT Core will gain deep IoT technology and engineering expertise, including Xively’s advanced device management, messaging, and dashboard capabilities,” Antony wrote further.
Earlier this week, at the Goldman Sach’s technology and Internet conference held in San Francisco, Google Cloud CEO, Diane Greene hinted about the deal when she spoke about the importance of the Internet of Things.
LogMeIn originally acquired Xively in 2014 for $12 million.
LogMeIn said in a company blog post that Google “is a better fit for Xively”.
“So the obvious question is, does this mean LogMeIn is exiting the IoT? Well, if you mean the IoT connectivity platform space, yes, we’re leaving it. We believe that Google Cloud, now armed with Xively’s team and great technology – and backed by their platform and developer heritage and reach – are a far better fit for the future of platform leadership,” wrote LogMeIn.
The acquisition will also result in Google gaining 45 employees.
The Alphabet-owned company, by acquiring Xively, will have an established IoT platform (with an engineering team) for its cloud business where it can add its product portfolio and grow the cloud business further.
Google revealed earlier this month that its combined cloud business was pulling in $1billion revenue per quarter. Now, to compete with the other two giants of the market, AWS and Microsoft, Google must put in hard work to expand its cloud business and this acquisition might be a significant step for achieving that goal.
Last week, LogMeIn acquired Live Communications for $357 million to step in unified communications.
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