Tech giant Cisco announced recently that it will be acquiring AppDynamics, a privately-held application intelligence software company, headquartered in San Francisco.
The deal is worth $3.7 billion, and will be completed in cash and assumed equity awards.
Rowan Trollope, Cisco’s senior vice president and general manager of Cisco’s Internet of Things and Applications Business Group said it became much harder to keep enterprise apps running and performing well.
With the importance apps have nowadays, and with AppDynamics being a cloud application and business monitoring platform, it will be a great addition to Cisco, as well as Cisco’s clients.
"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.
"AppDynamics is empowering companies to build and successfully run the applications they need to compete in today's digital world," said David Wadhwani, AppDynamics CEO and president. "With digital transformation, companies must re-define their relationships with customers through software. We're excited to join Cisco, as it will enable us to help more companies around the globe."
There won’t be much change within AppDynamics’ structure, though. David Wadhwani will continue to serve as CEO, although the company will now be a new software business unit in Cisco’s IoT and Applications business.
The acquisition is expected to close in Cisco's third quarter of fiscal year 2017, subject to customary closing conditions.
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