Together, AppDynamics and Cisco will give customers comprehensive visibility from code to consumer and everything in-between
SAN JOSE, CA--(Marketwired - Mar 22, 2017) - Cisco (NASDAQ: CSCO) today announced that it has completed the acquisition of
AppDynamics, a leader in application and business monitoring. Together, Cisco and AppDynamics will deliver visibility across
the network, data center, security and applications and drive digital transformation that improves customer experiences.
As digital experiences get simpler for consumers, they get more complex for companies trying to stay ahead of customer
expectations. The rise of connected devices, distributed architectures, and multi-clouds have increased the complexity of
application environments. Companies need insight into the health of every application and every transaction in order to keep up
with the pace of change.
AppDynamics empowers the world's largest customers to digitally transform themselves faster and with more confidence. With
AppDynamics, enterprises can watch every line of code and understand its impact on user experience and application performance,
while providing real-time insight into the digital business. Together with AppDynamics, Cisco will now be able to offer
intelligence, correlation and insights at every level of the infrastructure, security and application. This will enable customers
to make more informed IT decisions and improve business results.
"In a digital world, the user experience, application, and business are converged and inseparable. AppDynamics sits at this
intersection monitoring the impact of every line of code on business outcomes," said David Wadhwani, current chief executive
officer, AppDynamics. "By joining forces with Cisco, we're able to double down on our vision of helping companies overcome the
complexity of modern software so they can deliver exceptional customer experiences and drive better business performance."
"We acquired AppDynamics because they are a market leader in a category that will be a cornerstone for how enterprises drive
their business forward," said Rowan Trollope, senior vice president and general manager, Internet of Things (IoT) and
Applications, Cisco. "Together, AppDynamics and Cisco will be the only company that can deliver complete visibility spanning from
the infrastructure to application to end user."
In its last fiscal period as an independent company, AppDynamics saw year over year revenue growth of over 50%, with
approximately 75% of last year's product revenue purely subscription-based*. The company has enjoyed significant success and
customer traction, including:
AppDynamics will continue to be led by David Wadhwani as a new software business unit in Cisco's IoT and Applications
business, reporting to senior vice president Rowan Trollope. As part of Cisco, AppDynamics will serve a critical role in helping
drive Cisco's continued transformation into a software company. Under the terms of the agreement, Cisco paid approximately $3.7
billion in cash and assumed equity awards.
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Forward-Looking Statements
This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, including statements regarding the expected benefits to Cisco and its
customers, and plans regarding AppDynamics personnel. Readers are cautioned that these forward-looking statements are only
predictions and may differ materially from actual future events or results due to a variety of factors, including, among other
things, the potential impact on the business of AppDynamics due to the uncertainty about the acquisition, the retention of
employees of AppDynamics and the ability of Cisco to successfully integrate AppDynamics and to achieve expected benefits,
business and economic conditions and growth trends in the networking industry, customer markets and various geographic regions,
global economic conditions and uncertainties in the geopolitical environment and other risk factors set forth in Cisco's most
recent reports on Form 10-K and Form 10-Q. Any forward-looking statements in this release are based on limited information
currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.
*For nine months ended October 31, 2016