Technology conglomerate Cisco has announced its takeover on a San Francisco based software company, ThousandEyes. The company has not disclosed the monetary value of the deal but the reports have been speculating it for $1 billion.
ThousandEyes was started in 2010 by Mohit Lad and Ricardo Oliveira and today it has a workforce of 400. The firm provides solutions to monitor network for outages. Cisco has been expanding its catalogue beyond its hardware services and moving into software business. Prior to ThousandEyes, Cisco acquired AppDynamics, an application performance and monitoring company in 2017 for $3.7 billion.
“The combination of Cisco and ThousandEyes will enable deeper and broader visibility to pin-point deficiencies and improve the network and application performance across all networks. This will give customers end-to-end visibility when accessing cloud applications, and Internet Intelligence will improve networking reliability and the overall application experience,” said Todd Nightingale, senior VP and general manager, Cisco Enterprise Networking and Cloud.
The merger will bring ThousandEyes under Cisco’s Networking Business Unit and is expected to be finalized before Cisco’s first quarter of FY21. Mohit Lad gave a statement saying that this deal is not the end of ThousandEyes. “Our strategy has been to keep growing and to make decisions that were healthy for the long term. While some folks may argue that this is an exit, it’s not in my mind. 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,” he said.
Post the deal, Lad will be operating as GM of ThousandEyes and Oliveira will continue his role of driving firm’s product vision and innovation strategy.