Cisco to Buy AppDynamics for $3.7 Billion

By Maria Armental 

Cisco Systems Inc. is buying software company AppDynamics Inc. in a roughly $3.7 billion deal, scrapping off AppDynamics' plans to go public.

The deal, expected to close in the third quarter, is Cisco's largest since it bought cybersecurity firm Sourcefire Inc. in 2013.

AppDynamics's software helps companies monitor their networked applications.

Chief Executive David Wadhwani will continue to lead the San Francisco company as a new software business unit in Cisco's so-called Internet of Things and Applications business. He'll report to Senior Vice President Rowan Trollope.

The biggest maker of networking equipment -- and long considered a bellwether in corporate spending -- Cisco has long promoted the shift to IoT applications as the next major phase in the evolution of the internet. Last year, Cisco boughtJasper Technologies in a $1.4 billion deal.

Shares, up 31% over the past 12 months, rose 5 cents to $30.65 in after-hours trading.

--Don Clark contributed to this article.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

January 24, 2017 20:39 ET (01:39 GMT)

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