Loading...

Cisco to buy IIT alumnus-founded AppDynamics for $3.7 bn

Loading...

Networking equipment giant Cisco Systems Inc has agreed to acquire San Francisco-based AppDynamics Inc, an application intelligence software company, for nearly $3.7 billion, in one of its largest deals in the past few years.

Founded by IIT Delhi alumnus Jyoti Bansal in 2008, AppDynamics' cloud application and business monitoring platform enables companies to improve application and business performance.

Loading...

"Together AppDynamics and Cisco will provide customers with intelligent and actionable insights, helping them make speedy business decisions and improve business performance," Cisco said in a statement.

The cash-and-equity deal highlights Cisco's efforts to go beyond its core networking business. In another big acquisition, Cisco had bought Internet of Things cloud platform developer Jasper Technologies for $1.4 billion in February 2016.

AppDynamics will continue to be led by chief executive David Wadhwani as a new software business unit in Cisco's IoT and applications business.

Loading...

The acquisition is subject to customary closing conditions and is likely to close in Cisco's third quarter of fiscal year 2017.

"The acquisition of AppDynamics also supports Cisco's strategic transition toward software-centric solutions that deliver predictable recurring revenue," said Robert Salvagno, head of Cisco's M&A and venture investment team, in a blog post.

Several media reports had previously suggested that AppDynamics could go public in 2017. The reports also said that the company was looking to raise $100 million through a public offering.

Loading...

Cisco's India bets

The US company has also been making venture-style investments in India. Until last year, Cisco had invested in about 25 companies in India.

In March 2016, Cisco said it would invest $100 million to fund startups and train 2.5 lakh students in India by 2020. The company, which has over 10,000 employees in India, is looking at funding early- and growth-stage companies in the country across areas such as Internet of Things and smart cities.

Loading...

In November last year, Cisco Investments joined the Series B funding round of Pune- and San Francisco-based mobile customer relationship management firm Helpshift Inc.

In October 2015, Cisco took over Bangalore-based IT security firm Pawaa Software Pvt Ltd. for an undisclosed amount, making its first acquisition in India.


Sign up for Newsletter

Select your Newsletter frequency