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

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
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

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

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.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?