While Cisco wouldn’t say what it plans to pay, the tech giant announced Thursday it plans to buy internet monitoring solution startup ThousandEyes.
The move complements the company’s 2017 $3.7 billion acquisition of AppDynamics and is another clear sign that Cisco is pushing further into software and services. CNBC and other outlets have reported the ThousandEyes acquisition is valued at around $1 billion.
ThousandEyes is backed by several venture capital firms, including Sutter Hill Ventures, Sequoia Capital, and Salesforce Ventures, according to Pitchbook. Its chief executive officer and co-founder Mohit Lad said early discussions with Cisco and AppDynamics could be traced back to early last year.
“In our customer base, we kept running into AppDynamics on the application side and Cisco products on the network side and naturally started having conversations on collaborating with both sides of Cisco to formulate a strong joint vision. It was during these conversations over the last 12 months or so, that the two companies have gotten to know each other and developed a strong sense of mutual respect,” Lad wrote in a blog post. “Cisco’s excitement about what we were doing and how it complements Cisco’s strengths has been evident in every conversation across different parts of the organization.”
Cisco said that the purchase will close before the first quarter of its fiscal year 2021.