The Cisco Systems Inc (NASDAQ:CSCO) machine keeps growing as the tech giant struck a deal to buy AppDynamics Inc for US$3.7bn before the latter's planned IPO had ocurred.
Cisco, a network gear manufacturer, is paying nearly double the US$1.72bn AppDynamics was seeking to reach via the float.
The AppDynamics’ software helps firms to fine-tune the performance of their own computer systems.
AppDynamics posted revenue of US$158.4mln for the nine months to end October - over 50% more than the same period a year earlier.
Cisco has been aiming to boost its revenue growth, particularly recurring growth, as increasingly, firms move away from fixed networks and more flexible, cloud solutions.
AppDynamics will slot into Cisco’s IoT (Internet of Things) and applications business and the acquisition is expected to close in fiscal third quarter.
In pre-market Cisco shares nudged 0.69% higher to US$30.60.