(Adds quotes from Cisco executive, investor in AppDynamics)
SAN FRANCISCO, Jan 24 (Reuters) — Cisco Systems Inc said on Tuesday that it agreed to buy U. S. business software company AppDynamics Inc for about $3.7 billion, one of its largest deals in recent years as the company seeks growth in areas outside of its core networking business.
Legacy technology players like Cisco have been trying to shift their businesses to stay ahead of technology developments, such as the rise of cloud computing, that could otherwise threaten their core businesses.
Cisco’s announcement comes a week after Hewlett Packard Enterprise Co said it would buy privately held cloud software company SimpliVity for $650 million in cash, as it looks to expand its position in hybrid cloud platforms.
Rob Salvagno, Cisco’s vice president of corporate development, said in an interview that the acquisition fits Cisco’s long-term direction and its transition toward software.
AppDynamics, based in San Francisco, will be become part of Cisco’s Internet of Things and Applications Unit, reporting to Rowan Trollope.
