Cisco CEO Chuck Robbins holds a conference at the Mobile World Congress in Barcelona, Spain, February 27, 2019.
Joan Cros | NurPhoto | Getty Images
Cisco continued its wave of software acquisition, announcing Thursday the purchase of ThousandEyes, whose technology helps companies monitor their network for outages.
Terms of the deal were not disclosed, but a person familiar with the matter confirmed Bloomberg report that the purchase price was around $ 1 billion.
Since Chuck Robbins was named CEO of Cisco in 2015, the company has focused on expanding its portfolio of cloud-based software to meet the needs of businesses moving away from their own data center. and turn to more distributed environments.
ThousandEyes will be part of the new Cisco Networking Services business unit, led by Todd Nightingale, the company said in the release. The purchase follows Cisco’s 2017 acquisition of AppDynamics for $ 3.7 billion, which has brought software that helps companies spot bugs in their apps and fix them quickly.
In addition to AppDynamics, previous Cisco software agreements include the purchase of $ 2.35 billion from Duo Security in 2018 to increase in authentication space, and the acquisition of Broadsoft for $ 1.9 billion. dollars in 2017 to add technology for contact centers.
This was the first acquisition that Cisco made entirely online, which was the only real way to manage transactions given the home stay requirements in place since March.
“It was difficult to sign an agreement like this without ever entering the same room to be technologically and commercially diligent,” said Todd Nightingale, executive vice president and general manager of enterprise networks and cloud at Cisco.
Mohit Lad, co-founder and CEO of ThousandEyes, said he used the features of Cisco’s Webex video call service to close the deal, including rooms where a few people can separate from the large group and continue the conversation. Like Zoom, Microsoft Teams and other calling technologies, Webex has become more widely used in recent months with people working from home to prevent the spread of the coronavirus.
ThousandEyes always has all the money increased last year, Says Lad. The start-up has raised more than $ 110 million. Venture capitalists included GV (formerly Google Ventures), Salesforce Ventures and Sequoia.
“We were seeing so much market attraction that we didn’t think we could keep up with demand, so this is one of the reasons we accelerated this,” Lad told CNBC.
ThousandEyes says its customers include Microsoft, Slack, PayPal and Lyft.
WATCH: Cisco’s past acquisitions now play in its favor