Cisco snatches AppDynamics from IPO market for US$3.7b

The deal comes just two days before the application monitoring company was expected to go public

Cisco has agreed to acquire AppDynamics for $3.7 billion in cash and assumed equity awards, scooping up the application performance management company just days before its expected initial public offering. The deal, which Cisco announced late Tuesday, is expected to close by the end of April.

AppDynamics was going to be the first tech company to go public in 2017, with its initial offering set for Thursday, January 26. Tech industry insiders and investors were watching AppDynamics’s IPO closely, because Wall Street investors’ treatment of its business could signal how other companies would fare later in 2017.

The company offers application performance management services, which provide companies with a dashboard showing how well the software they operate is working. That’s important, considering that businesses are often reliant on computerized systems for a variety of key functions. (For example, a computer problem led to United Airlines putting a two-hour ground stop on all its flights on Monday.)

According to Cisco, AppDynamics will continue to operate as an independent division under the leadership of its current CEO David Wadhwani. The team will report to Rowan Trollope, Cisco’s senior vice president and general manager for its IoT and Applications business.

"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,” Trollope said in a press release.

AppDynamics’s last round of private funding valued the company at $1.9 billion, and its initial public offering was expected to come in below that figure. Cisco is paying a heavy premium.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Blair Hanley Frank

IDG News Service
Show Comments

Essentials

Mobile

Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?