Home IT/Telecom Cisco to buy AppDynamics for $3.7b
IT/Telecom - January 25, 2017

Cisco to buy AppDynamics for $3.7b

Cisco Systems Inc said on Tuesday that it agreed to buy U.S. business software company AppDynamics Inc for about $3.7 billion, making one of its largest deals of recent years as it searches for growth beyond its core networking business.

Legacy technology players like Cisco have been trying to shift their strategy to stay ahead of technology developments, such as the rise of cloud computing, that could otherwise threaten their core businesses.

Cisco’s announcement comes a week after Hewlett Packard Enterprise Co said it would buy cloud startup SimpliVity for $650 million in cash.

President Donald Trump’s plan to incentivize U.S. companies to repatriate their overseas cash could spur a new wave of deal making for large tech companies like Cisco, analysts say.

AppDynamics makes software that manages and analyzes applications and it has about 2,000 paying customers, including NASDAQ Inc, Nike Inc and its new owner, Cisco.

It is Cisco’s largest acquisition since it bought security company Sourcefire for $2.7 billion in 2013.

The deal, which is a mix of cash and equity, is expected to close by April.

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