Cisco has announced its intention to acquire application intelligence company AppDynamics for $3.7 billion. Earlier reports had suggested that AppDynamics could have been the first technology company to go public this year, and analysts estimated that the IPO could have been worth $2 billion.
AppDynamics sells tools that help enterprise application development teams and operations staff monitor software performance. “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,” blogged Cisco vice president of corporate business development Rob Salvagno. “Together, with Cisco’s industry-leading digital network architecture, customers will now have unprecedented end-to-end insight across their technology stack, from infrastructure to application.”
The purchase, which is one of Cisco's largest ever, is expected to close in the third quarter.