Cisco buys AppDynamics on eve of IPO for $3.7 bln

Cisco Systems said it would buy AppDynamics for $3.7 billion, pulling the rug from under the year’s first big tech IPO of a venture backed company.

AppDynamics had planned to go public Wednesday with an offering that would have valued the company at no more than $1.7 billion, or below its last private round valuation of $1.9 billion. AppDynamics will become as a new software business unit in Cisco’s IoT and applications business, and remain led by CEO David Wadhwani, according to a press release.