Cisco’s AppDynamics purchase: A big price tag that could have big dividends
Cisco made some big news earlier this week with the launch of its new Spark Board at its Collaboration Event. Not to be content with one piece of big news, on the same day Cisco announced it had entered an agreement to acquire AppDynamics on the eve of its initial public offering (IPO). The $3.7 billion that Cisco paid was a hefty premium over the $2.0 billion figure put on the IPO. With all the acquisitions Cisco has made, it’s fair to say the company is well experienced in this area. So, it must have seen something interesting in AppDynamics to plunk down that much money for a company that did about $150 million in revenue in the first nine months of 2016. Most of Cisco’s massive war chest is overseas, which is why many of its big price tag purchases have been for companies headquartered outside the U.S., making this even more intriguing.To read this article in full or to leave a comment, please click here