CSCO Stock Up Nearly 1% as Cisco Acquires ThousandEyes for Around $1B

Cisco announced the purchase of ThousandEyes. The terms of the deal are unknown. But it is believed that Cisco has paid around $1 billion.

Cisco Systems Inc (NASDAQ: CSCO), a networking hardware firm, announced on Thursday that it intends to acquire ThousandEyes, an Internet monitoring firm. Cisco has been beating around the bush about ThousandEyes takeover after it bought AppDynamics in 2017. Then, Cisco signaled that they want to offer more services than what they used to provide.

Meanwhile, as at the time of writing, Cisco Systems (CSCO) stock was on the rise, surging 0.73% and trading at $45.93, having closed at $45.60 yesterday. The market cap is $194.35 billion.

Reportedly, Cisco had to pay $1billion according to several sources to complete ThousandEyes takeover. Hence, the networking firm has spent around $4.7 billion to complete its acquisition spree of both AppDynamics and ThousandEyes.

The firm since 2015 has been working on broadening its horizon of cloud-based software. This is to enable it to cater to firms that are moving away from their own data center into more distributed environments.

Acquisition of ThousandEyes by Cisco

After the takeover, ThousandEyes will be part of Cisco’s Networking service business operated by Todd Nightingale. The service ThousandEyes provide for internet users is pivotal more than ever now. This is because internet connections now are pressured so much because more people work from home now than before.

Before now, ThousandEyes was watching the internet connection and would cope working with Cisco monitoring technologies. As many agents are working on the internet, ThousandEyes understands very well the internet and would only get better with every deployment, Nightingale explained.

He said further that they would also integrate ThousandEyes capabilities into the AppDynamics portfolio. This would help improve visibility across the enterprise, the internet, and the cloud.

Before Cisco took over AppDynamics and ThousandEyes recently, the firm had acquired other firms. In 2018, Cisco purchased Duo Security for around $2.35 billion. It also acquired Broadsoft in 2017 for $1.9 billion. This is to bulk up in the authentication space and add technology for contact centers.

Unlike other Cisco acquisitions, they acquired ThousandEyes online. It was done that way as a result of the stay-at-home order in March. According to Todd Nightingale, Cisco’s VP, he said it was though pulling the deal without carrying out technology diligence and business diligence.

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Author: Muhaimin Olowoporoku

Muhaimin is a journalist, a fintech and crypto enthusiast who is passionate about its development in Africa and across the globe. Muhaimin derives pleasure in reporting and analysing happenings in the crypto world and a believer in Blockchain technology.