The world’s largest manufacturer of semiconductor products, Intel Corp (INTC - Free Report) announced that it has acquired San Francisco-based startup Mashery Inc.for $180 million.
Founded in 2006, Mashery provides technological solutions in application programming interfaces (API) to some of the leading brands such as USA TODAY, Comcast (CMCSA - Free Report) , Hoover’s, Klout, Associated Press, Rdio and Travelocity. API comprises pieces of code and other specifications that facilitate software development. The acquisition marks Intel’s efforts to further build its software business.
APIs are basically a set of routines, protocols and tools for building software applications. Good APIs make it easier to develop a program by providing all the building blocks, which the programmer can put together.
Currently, firms such as eBay (EBAY - Free Report) , Amazon Web Services and Google all use this technology to run their businesses. Microsoft Corp, IBM, Layer 7, Apirio and MuleSoftall provide API management services.
Intel sells chips, which are used in server systems that companies use to share information with mobile devices. Mashery provides the building blocks that are used by software developers to make user interaction possible. The acquisition furthers Intel’s efforts in the software and services segment.
Intel reported revenues of $12.58 billion, within the guidance range of 12.7 billion (+/-$500 million) in the first quarter of fiscal 2013, down 6.7% sequentially and 2.5% year over year. Weaker-than-expected PC demand stemming from tablet cannibalization and restrained consumer buying due to tighter budgets continued in the quarter.
Currently, Intel shares carry a Zacks Rank #3 (Hold).