App-Dynamics acquired by Cisco in a $3.7 billion deal

Cisco, one of the largest technology firms in the world, bought a Silicon Valley startup App-Dynamics for an apparent sum of $3.7 billion. Ironically, the San Francisco-based startup was due to list its shares on the bourses on very next day. The $3.7 billion figure is twice is value determined by public markets on the day before it goes public.

App-Dynamics is run by an Indian born entrepreneur Jyoti Bansal, who has ~14% stake in the startup making a payout of $525 million from the deal alone. He said that even after the acquisition, the identity of the nine year old startup will be maintained.

Jyoti is now looking to come back to India, and is very optimistic about India startup ecosystem. He said that “I think the next wave of successful startups in India will be seen among B2B players (business software makers), and I am looking forward to mentoring and helping a diverse range of Indian startups. B2B players in India need a lot of experience, in terms of understanding what it takes to sell and market their products on a global level, that’s one area I am hoping I can help in”.