This morning, Alphabet Inc (NASDAQ:GOOGL) announced plans to acquire API management platform Apigee for a total of $625 million or $17.40 per share in cash. Apigee currently boasts 300 enterprise customers, including notable clients like Walgreens, AT&T, Burberry, First Data, and Live Nation.

Baird top analyst Colin Sebastian sings the praises of Google’s new leadership, commending cloud chief Diane Greene for guiding the tech giant in the direction of a “more aggressive Cloud strategy.” As such, the analyst reiterates an Outperform rating on GOOGL with a price target of $900, which represents a 12% increase from where the shares last closed.

Sebastian comments, “We note that API management is a consolidating space, with Oracle, CA, and IBM each acquiring leaders, while Apigee is one of the remaining ‘pure-plays’ in the market. In addition to adding a valuable service to Google’s enterprise computing ‘stack’, we believe Apigee could also help Google increase its IaaS/PaaS penetration.”

“Google already manages one of the largest networks of applications in the world (i.e. Chrome, Maps, YouTube, Gmail), and adding Apigee’s technology to its Cloud Platform provides Google with a more compelling value proposition to prospective customers. As more companies look to move IT to the cloud given the cost/operational advantages, we believe a robust API management platform can be a differentiating feature for Google’s Cloud offering, particularly given the secular trends in mobile apps,” the analyst concludes.

As usual, we like to include the analyst’s track record to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Colin Sebastian has achieved a high ranking of #5 out of 4,147 analysts. Sebastian upholds an 81% success rate and yields 20.5% in his annual returns. When recommending GOOGL, Sebastian earns 16.8% in average profits on the stock.

TipRanks analytics indicate GOOGL as a Strong Buy. Based on 32 analysts polled in the last 3 months, 31 rate a Buy on GOOGL 1 maintains a Hold. The consensus price target stands at $942.84, marking a nearly 18% upside from where the stock is currently trading.