SEG Sector Deals: Cisco Acquires AppDynamics for $3.9 Billion

Cisco acquired “unicorn” AppDynamics just prior to their IPO on Tuesday, January 24th. AppDynamics’ best-of-breed cloud application intelligence platform complements Cisco’s network performance management suite to provide customers with enhanced visibility and optimization of their entire IT infrastructure stack.

Cisco’s offer ($3.9 billion Enterprise Value, 18.9x TTM revenue) is nearly 130% higher than AppDynamics’ projected $1.7 billion IPO valuation and nearly 400% higher than the median 5.0x TTM revenue multiple for all publicly traded SaaS companies in 4Q16.

Brief Transaction Details:

Enterprise Value (mm)$3,902.9
TTM Seller Revenue (mm)$206.2
TTM Seller EBITDA (mm)-$105.3
TTM Revenue Multiple18.9x
TTM EBITDA Multiple
Seller Business Description

AppDynamics, Inc. provides an integrated suite of software application and IT infrastructure monitoring and analytics products.

Buyer Business Description

Cisco is a leading provider of IT infrastructure software and hardware.

For more information, visit CiscoTechCrunch or Bloomberg.