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Cisco wants to buy AppDynamics for $3.7 billion

Some interesting news have been wandering around the Internet these days. It seems that Cisco is planning to buy AppDynamics. The price? Well, 3.7 billion dollars.

AppDynamics, is known for helping companies monitor application performances. Moreover, the AppDynimic’s long awaited IPO, which was scheduled for this week, has been called off in favor of a huge acquisition.

We must say that this isn’t Cisco’s first huge acquisition. No, the company has been really active lately. As we now, the company paid 1.4 billion dollars for Jasper Technologies.

All these purchases seem to be moving Cisco from the era of its core hardware networking business.

AppDynamics develops software to help companies ranging from Capital One Financial to Expedia monitor their mobile apps and websites for bugs and fix them before customers drop off.
We must also say that the idea of networking in general has evolved over time as new kinds of devices find their way onto the Internet.

Moreover, it seems that Cisco is continuing to move beyond its usual business. On the other side, we must say that AppDynamics has made some interesting and strategical moves.

Without a doubt that the company has been testing the waters of the IPO market to set a good value for itself for negotiations with larger companies.

The networking giant said Tuesday that it would acquire AppDynamics for roughly $3.7 billion.

This means that AppDyniamics wanted to be bought by a large company. 

This seems to start being a trend, because AppDynamics is not the only company that drops a fling and intents to go public while having acquisition talks behind the scenes.

Applications have become the lifeblood of a company’s success. Keeping those apps running and performing well has never been more important,” the company declared in a statement. 

Unfortunately, that job has only gotten harder, as IT departments and developers struggle with a tangled web of disconnected, complex data that’s hard to understand. 
The combination of Cisco and AppDynamics will allow us to provide end to end visibility and intelligence from the network through to the application; which, combined with security and scale, and help IT to drive a new level of business results.

It is important for Cisco to have market-leading software in our portfolio to deliver on this journey that we’ve been on for some time,” has declared Hilton Romanski, Cisco’s head of corporate strategy, for Bloomberg. “This asset is best in class. We believe this is one of the best teams out there to help us on our journey.”

As we mentioned, Cisco will pay approximately 3.7 billion dollars in order to purchase AppDynamics. This huge amount of money will be paid with cash and assumed equity awards.

This is what the San Joes, California-based Cisco declared in a statement. After the price will be paid, AppDynamics will officially become a unit in Cisco’s IoT and Applications business. This deal will probably be closed in Cisco’s fiscal third quarter, which is in April.

AppDynamics has been founded in 2008, and has the mission to help businesses track how well their websites and applications are running, so they can respond to crashes or connection slowdowns.

AppDynamics was valued at 1.8 billion dollars in a private funding that closed in 2015. “In a multi-cloud world, your ability to maintain quality of service and visibility can become obfuscated,” has declared Hilton Romanski.
Cisco wants to buy AppDynamics for $3.7 billion Reviewed by Mike Beasley on 2:13 PM Rating: 5
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