Deal to enable networking vendor to provide businesses with visibility from infrastructure to application.

Cisco late on Tuesday agreed to acquire application monitoring specialist AppDynamics for $3.7 billion (€3.4 billion).

Based in San Francisco, privately-held AppDynamics’ cloud-based platform helps companies keep tabs on the performance of business applications, and identify and tackle potential problems before they materialise.

"Applications have become the lifeblood of a company’s success. Keeping those apps running and performing well has never been more important. Unfortunately, that job has only gotten harder, as IT departments and developers struggle with a tangled web of disconnected, complex data that’s hard to understand," said Rowan Trollope, SVP and general manager of Cisco’s Internet of Things and applications business group

"The combination of Cisco and AppDynamics will allow us to provide end-to-end visibility from the network through to the application," he said.

The transaction is expected to complete during Cisco’s fiscal third quarter – which ends in April – subject to customary closing conditions. After the deal closes, AppDynamics will become part of Cisco’s IoT and applications division; it will continue to be led by CEO David Wadhwani.

"AppDynamics is empowering companies to build and successfully run the applications they need to compete in today’s digital world," Wadhwani said. "With digital transformation, companies must re-define their relationships with customers through software. We’re excited to join Cisco, as it will enable us to help more companies around the globe."