Cisco snaps up AppDynamics for $3.7B right before its IPO

 

Cisco said today that it would acquire AppDynamics, which helps companies monitor application performance, for a whopping $3.7 billion.And now, it would seem that AppDynamics’ long-awaited IPO (this week!) has been called off in favor of a giant acquisition. It isn’t Cisco’s first major acquisition in recent memory — in fact, the company has been quite active — with the company paying $1.4 billion for Jasper Technologies. All these seem to be moving Cisco from its era of its core hardware networking business. The idea of networking in general has evolved over time as new kinds of devices find their way onto the Internet, and now it would seem Cisco is continuing that move beyond its usual competency.

AppDynamics may have even been testing the waters of the IPO market to set a value for itself for negotiations with larger companies for a potential acquisition. It’s not entirely uncommon that companies are working to not only drop a filing and intent to go public while having acquisition talks behind the scenes.

More…