The Google Apigee takeover news has had some people scratching their heads over why the search giant would bet on a losing company.

The confusion is not so much on the acquisition of the company, but rather the high valuation vis-à-vis the finances of the Apigee.

The company engages in APIs designed for the commerce industry. Its clients include AT&T, Burberry, Walgreen, First Data, among others. They pay Apigee for API softwares in e-commerce transactions so they won't have to develop one on their own.

When Google Apigee takeover news went to public consciousness, the search giant's SVP Dianne Greene wrote in a blog post:

"The addition of Apigee's API solutions to Google cloud will accelerate our customers' move to supporting their businesses with high quality digital interactions. Apigee will make it much easier for the requisite APIs to be implemented and published with excellence," she said.

Despite its poor management, with revenue of less than $100 million, what can't be denied is that Apigee has a good product. Greene enumerated what a good API should possess: first it needs security support, product innovation, stable interface, testing support and usage analytics.

In fact, she said, that Google's Apigee was in the news lately when it was recognized by Gartner Magic Quadrant for Application Services Governance for "completeness of vision."

According to Bloomberg, after months in the red, its investors walked away, if not laughing, then head held high because they managed to recoup their investments. When news of the Google Apigee takeover were going around, stock prices went up 44%.