Cisco Systems Inc. has agreed to
buy AppDynamics, a US technology firm for $3.7 Billion. AppDynamics was to
go public and was expected to be valued at around $1.9 billion, before it was
bagged by Cisco at almost double the valuation.
This makes it one of its largest
deals in recent years as Cisco searches for growth beyond its core
networking business. This is Cisco's largest acquisition since it bought
security company Sourcefire for $2.7 billion in 2013. Legacy technology players
like Cisco have been trying to shift their strategy to stay ahead of
technology developments, such as the rise of cloud computing, that could
otherwise threaten their core businesses.
AppDynamics makes software that manages and analyses
applications and it has about 2,000 paying customers, including NASDAQ Inc.
Nike Inc. and its new owner, Cisco. AppDynamics, a company that helps organizations
monitor applications and find meaning in data, a decade ago. In the nine years
since, AppDynamics grew from that initial dream to a successful
technology company that today is a strategic software vendor for the world’s
largest enterprises. AppDynamics will become part of Cisco's Internet of Things and
Applications Unit. Cisco's last large acquisition, Jasper, is also part of that
unit.
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