January 25, 2017

Cisco to acquire AppDynamics for $3.7 billion

The company says the acquisition fits Cisco’s long-term direction and its transition towards software

This week, Cisco, on its blog, announced its plans to acquire AppDynamics, a private application intelligence software platform. The acquisition comes across as Cisco’s step to grow in areas outside its core networking business.

Experts say that Cisco has been trying to shift its business focus to areas such as cloud computing to stay ahead of technological developments. AppDynamics makes softwares that manage and analyze applications and has 2,000 paying customers including Citrix System, Kraft, NASDAQ and Nike.

Cisco said in a statement:

As companies across industries are expanding their digital infrastructure, IT departments are faced with vast amounts of complex, siloed data.

AppDynamics helps many of the world’s largest enterprises translate this data into business insights and empowers them to drive value for their customers in today’s digital world.

The acquisition is expected to close in Cisco’s third quarter of fiscal year 2017. Cisco says that AppDynamics will continue being led by CEO David Wadhwani as a new software business unit under Rowan Trollope, Cisco’s Senior Vice President and General Manager, IoT and Applications business.

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