Alphabet Inc (NASDAQ:GOOGL) is set to acquire cloud software company Apigee in an all-cash deal of $625 million, or $17.40 per share. Morgan Stanley analyst Brian Nowak sings the praises of the tech giant in this “move to bolster its enterprise offering and developer community.”

As such, Nowak reiterates an Overweight rating on shares of GOOGL with an $880 price target, which represents a nearly 12% increase from where the stock is currently trading.

From the analyst’s perspective, the acquisition continues Alphabet’s further strides in beefing up its cloud offering in GCP, on the heels of bringing Diane Green to the team in November 2015 to take charge in cloud business, along with Tariq Shaukat in May 2016 to direct enterprise sales.

“We believe GOOGL will be able to benefit from APIC’s API management technology which is deployed in many enterprise accounts and should bolster its enterprise offering. GOOGL gains a backdoor to managing critical back-end systems of APIC’s major enterprise customers which also progresses GCP’s hybrid cloud value proposition. Furthermore, APIC’s bring access to a well-established developer community (~200k developers) which may translate to increased GCP adoption and innovation. Given the importance the developer community has played in AWS’s success, this acquisition could help GCP’s competitive position in the enterprise cloud space,” he concludes.

For Nowak, Application Programming Interfaces (APIs) are the future in unlocking the ultimate digital evolution for the enterprise, and considering Apigee already has a heavyweight head count of customers, including Walgreens, AT&T, Expedia, and SAP, this acquisition could prove to be an important, savvy step for GOOGL.

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, five-star analyst Brian Nowak is ranked#360 out of 4,124 analysts. Nowak has a 66% success rate and realizes 6.7% in his annual returns. When recommending GOOGL, Nowak yields 13.6% in average profits on the stock.

TipRanks analytics demonstrate GOOGL as a Strong Buy. Based on 32 analysts polled in the last 3 months, 31 rate a Buy on GOOGL, while 1 maintains a Hold. The consensus price target stands at $942.85, marking just under a 20% upside from where the shares last closed.