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Portrait of Jyoti Bansal

Jyoti Bansal

AppDynamics

Application performance monitoring (APM) software · San Francisco, California

Portrait: Unknown authorUnknown author / Wikimedia Commons, CC BY 3.0

$3.7B
Acquired by Cisco
2017
Acquisition
United States
Regional desk

The founder

Jyoti Bansal, an IIT Delhi graduate who moved to the U.S. on an H-1B visa, founded AppDynamics in San Francisco in 2008 after working at startups including Wily Technology. He built it into a leading application-monitoring platform used by large enterprises, owning roughly 14% of the company at exit. The Cisco deal — struck the night before AppDynamics’ Nasdaq debut — turned around 400 employees into millionaires. Bansal went on to found Harness, a DevOps software company later valued above $1.7 billion.

How it was sold

Cisco swooped in with a $3.7 billion cash-and-equity offer on January 24, 2017, one day before AppDynamics was set to price its IPO at an expected valuation under $2 billion — meaning the acquisition price came in roughly double what public markets were about to value the company at, one of the most dramatic "IPO-to-acquisition pivot" stories in enterprise software.