Cisco said today that it would acquire AppDynamics, a leading privately held application intelligence software platform which helps companies monitor application performance, for $3.7 billion. Cisco's announcement comes a week after HPE said that it intend to buy cloud startup SimpliVity for $650 million in cash.
Founded in 2008, AppDynamics develops software to help companies to monitor their mobile apps and websites for bugs. The company generated revenue of $158.4 million in the first nine months of 2016.
Announcing the deal, Rob Salvagno, VP Corporate Business Development of Cisco said in a blog post that, "Digitization and the transition to cloud are forcing the worlds of IT and business to blend together. In the digital economy, applications are critical. Combining real-time visibility and intelligence at the network, security and application layers is transformational for companies. It can provide them with insight into the state of their business and most importantly, into the quality of their customers’ experiences. To drive this transformation, we are excited to announce Cisco’s intent to acquire AppDynamics."
AppDynamics will continue to be a led by CEO David Wadhwani as a new software business unit under Rowan Trollope, Cisco senior vice president and general manager, IoT and Applications business. We look forward to welcoming the AppDynamics team to Cisco.
