In a recent development that marks one of the biggest acquisitions for Cisco Systems, the American multinational tech conglomerate has acquired AppDynamics for a whopping $3.7 billion (over Rs 25,000 crore). The deal was expected to close by the end of September.
AppDynamics is an performance management and IT operations analytics company based out of San Francisco, California and founded by Jyoti Bansal, an IIT Delhi graduate, and Bhaskar Sunkara, who is a computer science graduate from Madras University. Jyoti had founded the company eight years ago in the US. He now owns 14 per cent of the company, after having diluted his stake to many venture funds over the years. As per the deal, he will get around USD 520 million (approx Rs 3,400 crore).
The $3.7 billion deal is a mixture of cash and “assumed equity awards” and is expected to close in the firm’s third quarter of this year, subject to regulatory approval and other closing conditions.
Post acquisition, AppDynamics’ CEO David Wadhwani will continue to run the business and with this Cisco plans to create a new software business arm of Cisco’s existing Internet of Things and apps division. Wadhwani will report directly to Cisco’s IoT and apps boss Rowan Trollope, who said that applications had “become the lifeblood of a company’s success.”
The acquisition of AppDynamics, which is a 900 employees company, came when it was a day away from going public with an initial offering of stock.
“The fact that they were in their IPO process represented a window where we needed to make a decision,” Cisco’s corporate development vice president, Rob Salvagno, said in an interview with Reuters.
Jyoti Bansal completed his graduation in 1999 and moved to Cupertino on an H-1B visa to work for various Silicon Valley startups. He had to wait for almost eight years before he got his green card. In 2005, Bansal joined Wily Technology as an architect. CA (Computer Associates) bought the company in 2006, and in 2008, Jyoti left CA to start AppDynamics along with his co-founder Bhaskar Sunkara.
Jyoti has been a recipient of many leadership awards. In 2013, he was selected by Forbes as a “Best Cloud Computing CEO to Work For.” In 2014, he was named “Best CEO” by San Francisco Business Times at the Annual Tech & Innovation Awards, was an EY Entrepreneur Of The Year® 2014 & 2015 Award Finalist in Northern California, and received the EY Entrepreneur Of The Year® 2016 Award in the Technology category in Northern California.