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Cisco Systems Buys AppDynamics for $3.7 Billion

Cisco Systems Buys AppDynamics for $3.7 Billion

AppDynamics produces software that analyzes applications. They have 2,000 clients including Nike and NASDAQ. Cisco Systems bought AppDynamics for $3.7 billion. This is twice the value of AppDynamics ($1.9 billion as of November 2015). The transaction was made with cash and equity.

Cisco’s acquistion increased the share price to $26 from $12-$14. AppDynamics will be added to Cisco’s Internet of Things and Applications Unit. This is the largest acquistion made by Cisco since 2013, when they bought Sourcefire for $2.7 billion.

Source: Fox Business

Cisco System’s Revival

Here’s an overview of Cisco System’s recent history from Wikipedia:

As part of a massive rebranding campaign in 2006, Cisco Systems adopted the shortened name “Cisco” and created “The Human Network” advertising campaign. These efforts were meant to make Cisco a “household” brand—a strategy designed to support the low-end Linksys products and future consumer products (such as Flip Video camera acquired by Cisco in 2009).

On the more traditional business side, Cisco continued to develop its extensive enterprise-focused routing, switching and security portfolio. The quickly growing importance of Ethernet also influenced the company’s product lines…

Throughout the mid-2000s, Cisco also built a significant presence in India, establishing its Globalization Centre East in Bengaluru for $1 billion, and planning that 20% of Cisco’s leaders would be based there.

However, Cisco continued to be challenged by both domestic Alcatel-Lucent, Juniper Networks and overseas competitors Huawei. Due to lower-than-expected profit in 2011, Cisco was forced to reduce annual expenses by $1 billion.

Cisco Systems Buys AppDynamics for $3.7 Billion
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