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The deal is expected to be closed by April 2017.
Indian American entrepreneur Jyoti Bansal, the founder of AppDynamics, a performance management and IT Operations Analytics company based in San Francisco, has sealed a whopping $3.7 billion sales deal with Cisco Systems.
AppDynamics was valued at $2 billion ahead of the initial public offer that was scheduled to happen before the announcement was made by Cisco.
Bansal, a Computer Science graduate from Indian Institute of Technology, Delhi moved to the US in 2000 to work in a startup on H-1B visa before thinking of starting his own company.
In 2005, Bansal joined Wily Technology as an architect. That company was later bought by Computer Associates in 2006. The very next year, Bansal got his employment authorization document (EAD), as part of his green card process, and soon he would leave for California to start his dream company AppDynamics in 2008.
The company currently has over 1,200 employees and has registered $158.4 million revenue in the nine months that ended October 31, managing to make an increase of 50% compared to the same period last year.
On a LinkedIn post, published on Wednesday, Bansal discussed his entrepreneurial journey.
What a journey! Nine years ago today, in January of 2008, I was a young software engineer with a dream and determination to start my company. I spent my days making the rounds on Sandhill Road in Silicon Valley, trying to generate interest from venture capitalists. On nights and weekends, I sat on my couch in San Francisco and wrote code.
In the nine years since, AppDynamics grew from that initial dream to a successful technology company that today is a strategic software vendor for the world’s largest enterprises.
AppDynamics is an Application Intelligence company, with enterprises in real-time insights into application performance, user performance and business performance
AppDynamic has an integrated suite of applications built to enable customers to make faster decisions that enhance customer engagement and improve operational and business performance.
Bansal was the Chief Executive Officer of AppDynamic till 2015, after which he took over the position of Chairman on the board, handing over the earlier role to David Wadhwani.
Bansal owns 14% of the company shares, which would get him approximately $520 million from the Cisco deal.
The other prominent shareholders of the company are Greylock Partners, Lightspeed Venture Partners, and Kleiner Perkins Caufield & Byers. Each holds 21% and 8.3% shares respectively.
AppDynamic-Cisco deal is expected to be closed by April 2017 and is the biggest acquisition made by Cisco after the 2013 acquisition of US-based security company Sourcefire.
Bansal was quoted by Forbes saying, “I’m not done creating companies. I want to keep creating companies and solving problems for the rest of my life.” Bansal has received more than 30 patents related to complex software systems.