Cisco Systems said Thursday that it plans to acquire network monitoring company ThousandEyes.
The tech giant will acquire its San Francisco-based neighbor, ThousandEyes. Bloomberg earlier reported that the price tag was nearly US$1 billion.
Cisco and ThousandEyes did not immediately respond to CRN's request for comment before publication.
“We decided to become part of Cisco because we saw the potential to do much more, much faster, and truly create a legacy for ThousandEyes,” said ThousandEyes CEO Mohit Lad in an online post. “It’s a great outcome no doubt for employees and investors, but we also made this decision knowing this would be a great outcome for our customers—whose best interests have always been at the center of every decision we make at ThousandEyes.”
ThousandEyes, with 400 employees, specializes in software that provides actionable intelligence to help enterprises improve their digital experience, especially as applications and workloads move off-premises and into cloud environments. The company's technology can give businesses better visibility and monitoring into their entire infrastructure to identify issues and outages.
Cisco has been on a mission over the past three years to boost its software and services focus as it pivots away from hardware. An acquisition of ThousandEyes could complement Cisco's application performance and monitoring business, AppDynamics, which it acquired in 2017.
One of Cisco's most successful IT segments is its security business, which has routinely posted revenue growth over the last several years. Despite pressures from the COVID-19 pandemic, Cisco's security revenues rose by 6 percent year-over-year during the third quarter of 2020 rising to US$776 million. Cisco in March extended free licenses and expanded usage counts at no extra charge for three of its security technologies -- Cisco Umbrella, Cisco's Duo Security offering, and Cisco AnyConnect Secure Mobility Client -- to boost visibility to now even more geographically-dispersed businesses.
ThousandEyes in 2019 raised US$50 million in Series D funding, which the company said was going toward growing its global operations. The firm opened operations in Ireland, Australia, Germany and The Netherlands and increased its full-time headcount by 25 percent with more than 250 employees across the new regions, the existing San Francisco headquarters, and its London, Austin, New York and Tokyo offices, the company said last year.