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 Multiple | 18.9x |
| 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 Cisco, TechCrunch or Bloomberg.
