Alphabet Inc. owned Google (Google) announced on Thursday, February 13, 2020, that it has completed its $2.6 billion buyout deal of a privately held big-data analytics firm, Looker Data Sciences (Looker) following the approval from the UK’s competition watchdog.
On June 6, 2019, Google announced the buyout deal for Looker which was the first major acquisition deal for its new cloud business. Google, upon the completion of the deal, aims to build its Cloud’s BigQuery, a tool for managing large datasets.
Looker Helping Google’s Cloud Business
Looker provides data visualization tools that enable analysts to evaluate the estimation of factors including revenue or high-value customers and make aware of the market trend. On this acquisition of Looker, Google will compete with Tableau Software Inc. (DATA.N), Domo Inc., and Microsoft’s Power BI.
At present, Google’s cloud computing division is following up with the two biggest leading companies, Amazon.com Inc. (Amazon) and Microsoft Corp (Microsoft) in terms of revenue from renting infrastructure and other computing tools to businesses. Analysts explained that the analytics arm, looker will enable to support multiple Google’s cloud vendors while filling in a spot in the visualization of the data of the business trend globally.
The CEO of the software analytics company, Frank Bien cited the deal was a big opportunity for the software company as the world’s leading tech giant shared its resources to grow its business operations.
Bien said in a statement, “Joining Google Cloud provides us better reach, strengthens our resources, and brings together some of the best minds in both analytics and cloud infrastructure to build an exciting path forward for our customers and partners. The mission that we undertook seven years ago as Looker takes a significant step forward beginning today.”
Regulator’s Clearance of the Deal
The UK’s Competition and Markets Authority (CMA) ruled that the buyout deal of Looker by Google would not adversely impact the quality of service or in the market competition for data analytics tools and software.
The CMA added that the deal might not push to increase the price or lower quality as these two companies were not close competitors that could change the global competition on computing services. Other giant competitors in the cloud business including Microsoft, Oracle, Tableau, SAP, and IBM could ensure fair competition in this business sector.
The CMA asserted, “Although Google had the ability to make it difficult for rivals to access the Google-generated data they need from online advertising and web analytics services, there was no strong evidence they would have the incentive to do this.” Besides the UK’s authority approval, the deal has also been approved by the U.S. Department of Justice and the Austrian Federal Competition Authority.
The CEO of Google Cloud, Thomas Kurian said in a statement announcing the completion of the acquisition, “We believe we will be uniquely positioned to address the data analytics and business intelligence demands of even more enterprises globally, across all industries.”
Kurian added, “Google Cloud and Looker share a common philosophy around delivering open solutions and supporting customers wherever they are—be it on Google Cloud, in other public clouds, or on-premises. As more organizations adopt a multi-cloud strategy, Looker customers and partners can expect continued support of all cloud data management systems like Amazon Redshift, Azure SQL, Snowflake, Oracle, Microsoft SQL Server, and Teradata.”
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