World

Cisco to acquire security company ThousandEyes

Cisco Systems announced that it intends to acquire ThousandEyes, a security-software company, reportedly for close to $1 billion.

San Francisco-based ThousandEyes is an interesting startup, that has made a name for itself with its service that watches pretty much the whole internet to help companies figure out the source of performance problems of websites and web-based apps. For instance, it can determine if an outage is the company’s fault or that of its service providers.

While Cisco wouldn’t say what it plans to pay, ThousandEyes has raised a total of about $111 million with an estimated valuation of $670 million as of February 2019, according to Pitchbook. Bloomberg previously reported that the deal could be valued at “nearly” $1 billion.

On March 5, ThousandEyes reported that it had $100 million worth of revenue under contract for its 2020 fiscal year — representing growth of almost 80% year-over-year.

“The combination of Cisco and ThousandEyes will enable deeper and broader visibility to pinpoint deficiencies and improve the network and application performance across all networks,” said Cisco executive Todd Nightengale.

Bloomberg News reported earlier in the day that the deal was in the works and could be completed Thursday, with a price tag approaching $1 billion. Cisco did not disclose the purchase price. Cisco expects the deal to close before the end of its fiscal first quarter, which begins in August.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *