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 continued growth with customer wins with the European Organization for Nuclear Research (CERN), Vodafone, and Wells Fargo.

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.