AppDynamics calls off mammoth IPO in wake of $3.7bn takeover bid by Cisco
Cisco has coughed up a colossal $3.7bn to take ownership of business application performance specialists AppDynamics ahead of the latter’s IPO which had been scheduled to take place later this week.
Naturally that has now been called off in light of the takeover move, the latest in a line of ambitious acquisitions designed to propel Cisco beyond its core hardware networking business.
Outlining its ambitious move Cisco said in a release: “Applications have become the lifeblood of a company’s success. Keeping those apps running and performing well has never been more important. Unfortunately, that job has only gotten harder, as IT departments and developers struggle with a tangled web of disconnected, complex data that’s hard to understand.
”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.”
By bringing AppDynamics under its wing Cisco can offer comapnies an in-house service to guage the performance of apps, identifying issues which may restrict transactions or other interactions in good time.
As part of an internal reorganisation Cisco has moved to slash its workforce by a fifth to focus on cloud and software services.