Cisco Systems, Inc. (NASDAQ:CSCO) announced that it has completed the acquisition of business software company AppDynamics.
Under the terms of the deal announced earlier this year, the networking giant paid $3.7 billion in cash and assumed equity awards to acquire AppDynamics.
AppDynamics is a privately held software company, located in San Francisco. It is engaged in the development of software that manages and analyzes applications.
Cisco said that the acquisition will allow it to offer intelligence, correlation, and insights at every level of the infrastructure, security and application, enabling customers to make better IT decisions.
Application environments are becoming more complex with the rise of connected devices, distributed architectures, and multi-clouds. Businesses “need insight into the health of every application and every transaction in order to keep up with the pace of change,” Cisco said in a statement.
Cisco Systems, Inc. (NASDAQ:CSCO) plans to connect AppDynamics’ real-time data platform with its data platforms to give customers the richest end-to-end view in real-time.
“In a digital world, the user experience, application, and business are converged and inseparable. AppDynamics sits at this intersection monitoring the impact of every line of code on business outcomes,” AppDynamics CEO David Wadhwani said in a statement.
“By joining forces with Cisco, we’re able to double down on our vision of helping companies overcome the complexity of modern software so they can deliver exceptional customer experiences and drive better business performance,” Wadhwani added.
Rowan Trollope, senior vice president and general manager of Internet of Things (IoT) and Applications business at Cisco, said that AppDynamics and Cisco, together, “will be the only company that can deliver complete visibility spanning from the infrastructure to application to end user.”
In its last fiscal period, AppDynamics saw year-over-year revenue growth of more than 50%, with around 75% of last year’s product revenue purely subscription-based.
Wadhwani will continue to lead AppDynamics as a new software business unit in Cisco’s IoT and Applications business. He will report to Trollope.
Shares of Cisco Systems, Inc. (NASDAQ:CSCO) are up more than 12% year-to-date. The stock has gained nearly 20% during the last 12 months.
