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 CiscoTechCrunch or Bloomberg.

Software M&A Volume Hits All-Time High in 2016

2016 was a record year for software industry M&A activity since we began publishing our reports 15 years ago. In fact, each of the past three years marked new highs in terms of aggregate deal activity and reached 2,280 M&A deals in 2016. We expect 2017 M&A activity will remain strong as strategic buyers and private equity firms continue to aggressively compete for deals.

View 4Q16 Software Industry Financial Report

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Software Equity Group’s Client, Verdazo, Acquired by Pason

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Software Equity Group (SEG) is delighted to announce the sale of our client, Verdazo Analytics, Inc., a leading software provider of analytics solutions to the oil & gas sector, to Pason Systems, Inc. (TSX:PSI). SEG acted as the exclusive M&A advisor to Verdazo Analytics. For additional information about the transaction, please see the press release.