Technology major Cisco Systems, Inc. recently announced that it has agreed to acquire privately-held software maker ThousandEyes, Inc. The deal is worth nearly $1 billion, Bloomberg reported earlier, citing sources.
The recent development at the company was anticipated by industry analysts since Cisco bought AppDynamics in 2017 for $3.7 billion just before the IPO. The acquisition of AppDynamics was viewed as a signal that it wanted to move beyond its pure network hardware roots into the software monitoring side of the equation.
Todd Nightingale, SVP and General Manager for Enterprise Networking and Cloud at Cisco, announcing the deal in a blogpost said that the kind of data that ThousandEyes provides around internet user experience is more important than ever as internet connections have come under tremendous pressure with huge numbers of employees working from home.
“With thousands of agents deployed throughout the internet, ThousandEyes’ platform has an unprecedented understanding of the internet and grows more intelligent with every deployment, Nightingale wrote.
He added, “Cisco will incorporate ThousandEyes’ capabilities in our AppDynamics application intelligence portfolio to enhance visibility across the enterprise, internet and the cloud.”
ThousandEyes, Co-Founder and CEO Mohit Lad said, “We decided to become part of Cisco because we saw the potential to do much more, much faster, and truly create a legacy for ThousandEyes.”
ThousandEyes was founded in 2010 and so far has raised over $110 million on a post valuation. The company is currently valued at $670 million as of February 2019, according to Pitchbook Data.
The acquisition is expected to close before the end of Cisco’s Q1 FY’21. ThousandEyes will join Cisco’s newly-formed Networking Services business unit, reporting to Todd Nightingale.
As part of the Networking Services business unit, ThousandEyes CEO and co-founder Mohit Lad will take on the role of GM of ThousandEyes, and Co-Founder and CTO Ricardo Oliveira will continue to drive ThousandEyes product vision and innovation strategy.
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.