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.

Today’s Public Software Valuation and Financial Performance: The SEG Internet Index – Infrastructure Product Category

SEG’s Monthly Flash Reports track the financial performance and valuations of approximately 300 software companies, categorized in nearly 30 product categories across the on-premise software, SaaS and Internet sectors.  This post highlights the performance of the SEG Internet Index – Infrastructure product category as shown in the SEG June Monthly Flash Report.  To view the performance of dozens of other product categories, download the latest complimentary Monthly Flash Report here: http://www.softwareequity.com/research_flash_reports.aspx

In the month of May, the Infrastructure product category achieved a median EV/Revenue multiple of 1.8x, TTM Revenue Growth of 4.9%, and EBITDA Margin of 5.8%.  Notable companies outperforming their respective category include:

  • VeriSign with a 7.2x EV/Revenue multiple
  • Mitel Networks with a 75.1% revenue growth
  • Rovi with a 33.0% EBITDA marginMonthly Report:  SEG Internet Index – Infrastructure, Infrastructure, Public, Valuations, Financial Performance, 8x8, Akamai Technologies, Brightcove, BroadSoft, Envivio, GoDaddy, Harmonic, Interactive Intelligence, Limelight Networks, Mitel Networks, Polycom, Rovi, SeaChange International, ShoreTel, Sonus Networks, Synacor, Tucows, VeriSign

Today’s Public Software Valuation and Financial Performance: The SEG Internet Index – Infrastructure Product Category

SEG’s Monthly Flash Reports track the financial performance and valuations of approximately 300 software companies, categorized in nearly 30 product categories across the on-premise software, SaaS and Internet sectors.  This post highlights the performance of the SEG Internet Index – Infrastructure product category as shown in the SEG February Monthly Flash Report.  To view the performance of dozens of other product categories, download the latest complimentary Monthly Flash Report here: http://www.softwareequity.com/research_flash_reports.aspx

 

In the month of January, the Infrastructure product category achieved a median EV/Revenue multiple of 1.4x, TTM Revenue Growth of 7.2%, and EBITDA Margin of 5.1%.  Notable companies outperforming their respective category include:

  • VeriSign with a 6.5x EV/Revenue multiple
  • Rovi with a 32.4% revenue growth
  • VeriSign with a 61.6% EBITDA margin

SEG Internet Index – Infrastructure, Internet, Infrastructure, Public, Valuations, Financial Performance, 8x8, Akamai Technologies, Brightcove, BroadSoft, Digital River, Envivio, Hamonic, Interactive Intelligence, Limelight Networks, Mitel Networks, Polycom, Rovi, SeaChange International, Shore Tel, Sonus Networks, Synacor, Tucows, VeriSign

Today’s Public Software Valuation and Financial Performance: The SEG Internet Index – Infrastructure Category

SEG’s Monthly Flash Reports track the financial performance and valuations of approximately 300 software companies, categorized in nearly 30 product categories across the on-premise software, SaaS and Internet sectors.  This post highlights the performance of the SEG Internet Index – Infrastructure product category as shown in the SEG December Monthly Flash Report.  To view the performance of dozens of other product categories, download the latest complimentary Monthly Flash Report here: http://www.softwareequity.com/research_flash_reports.aspx

 

In the month of November, the Infrastructure product category achieved a median EV/Revenue multiple of 1.4x, TTM Revenue Growth of 7.2%, and EBITDA Margin of 4.7%.  Notable companies outperforming their respective category include:

  • VeriSign with a 7.2x EV/Revenue multiple
  • Rovi with a 32.4% revenue growth
  • VeriSign Health with a 61.6% EBITDA margin

SEG Internet Index – Infrastructure, Internet, Infrastructure, Public, Valuations, Financial Performance, 8x8, Akamai Technologies, Brightcove, BroadSoft, Digital River, Envivio, Harmonic, Interactive Intelligence, Limelight Networks, Mitel Networks, Polycom, Rovi, SeaChange International, ShoreTel, Sonus Networks, Synacore, Tucows, VeriSign

Today’s Public Software Valuation and Financial Performance: The SEG Internet Index – Infrastructure Category

SEG’s Monthly Flash Reports track the financial performance and valuations of approximately 300 software companies, categorized in nearly 30 product categories across the on-premise software, SaaS and Internet sectors.  This post highlights the performance of the SEG Internet Index – Infrastructure product category as shown in the SEG September Monthly Flash Report.  To view the performance of dozens of other product categories, download the latest complimentary Monthly Flash Report here: http://www.softwareequity.com/research_flash_reports.aspx

 

In the month of August, the Infrastructure product category achieved a median EV/Revenue multiple of 1.4x, TTM Revenue Growth of 9.8%, and EBITDA Margin of 5.1%.  Notable companies outperforming their respective category include:

  • VeriSign with a 7.0x EV/Revenue multiple
  • Envivio, Inc. with a 29.9% revenue growth
  • Verisign with a 61.5% EBITDA margin

SEG Internet Index – Infrastructure, Internet, Infrastructure, Public, Valuations, Financial Performance, 8x8, Akamai Technologies, Brightcove, BroadSoft, Digital River, Envivio, Hammonic Inc., Interactive Intelligence, Limelight Networks, Mitel Networkds, Polycom Inc., Rovi Corp., SeaChange International Inc., ShoreTel, Sorus Networkds, Synacor, Tucows Inc., VeriSign

Today’s Public Software Valuation and Financial Performance: The SEG Internet Index – Infrastructure Product Category

SEG’s Monthly Flash Reports track the financial performance and valuations of approximately 300 software companies, categorized in nearly 30 product categories across the on-premise software, SaaS and Internet sectors.  This post highlights the performance of the SEG Internet Index – Infrastructure product category as shown in the SEG July Monthly Flash Report.  To view the performance of dozens of other product categories, download the latest complimentary Monthly Flash Report here: http://www.softwareequity.com/research_flash_reports.aspx

 

In the month of June, the Infrastructure product category achieved a median EV/Revenue multiple of 31.2x, TTM Revenue Growth of 11.0%, and EBITDA Margin of 6.4%.  Notable companies outperforming their respective category include:

  • Akamai Technologies, Inc. with a 6.5x EV/Revenue multiple
  • Envivio, Inc. with a 33.2% revenue growth
  • VeriSign with a 61.0% EBITDA marginSEG Internet Index - Infrastructure, Internet, Infrastructure, Public, Valuations, Financial Performance, 8x8 Inc., Akamai  Tehcnologies, Brightcove Inc., BroadSoft Inc., Digital River Inc., Envivio Inc., Harmonic Inc., Interactive Intelligence Inc., Limelight Networks, Mitel Networks, Polycom, Ravi Corp., SeaChange International, ShoreTel, Sonus Networks, Synacor, Tucows Inc., VeriSign

Today’s Public Software Valuation and Financial Performance: The SEG Internet Index – Infrastructure Product Category

SEG’s Monthly Flash Reports track the financial performance and valuations of approximately 300 software companies, categorized in nearly 30 product categories across the on-premise software, SaaS and Internet sectors.  This post highlights the performance of the SEG Internet Index – Infrastructure product category as shown in the SEG June Monthly Flash Report.  To view the performance of dozens of other product categories, download the latest complimentary Monthly Flash Report here: http://www.softwareequity.com/research_flash_reports.aspx

 

In the month of May, the Infrastructure product category achieved a median EV/Revenue multiple of 1.4x, TTM Revenue Growth of 11.0%, and EBITDA Margin of 6.4%.  Notable companies outperforming their respective category include:

  • Verisign with a 6.4x EV/Revenue multiple
  • Envivio, Inc. with a 33.2% revenue growth
  • Verisign with a 61.0% EBITDA margin

SEG Internet Index - Infrastructure, Internet, Infrastructure, Public, Valuations, Financial Performance, 8x8 Inc., Akamai Technologies Inc., Brightcove Inc., BroadSoft Inc., Digital River Inc., Envivio Inc., Hamoric Inc., Interactive Intelligence Inc., Limelight Networks, Mitel Networks, Polycom Inc., Rovi Corp., SeaChange International, ShoreTel, Sonus Networks, Synacore, Tucows, Verisign