New Delhi: Indian-American entrepreneur Jyoti Bansal has agreed to sell his application intelligence venture AppDynamics to Cisco Systems for a $3.7 billion (Rs 25,150 crore approx) deal. The announcement has come a day before AppDynamics was to launch its initial public offer (IPO), which valued the company at $2 billion.
Here are some key facts related to the deal and AppDynamics founder Jyoti Bansal:
¦ Jyoti Bansal earned his BS degree in Computer Science from the Indian Institute of Technology, Delhi in 1999.
¦ He arrived in America on 4 July 2000. He gets an H-1B visa and started working for startup companies, while also working on plans to launch his own company.
¦ In 2005, Bansal joined Wily Technology as an architect. It was bought by Computer Associates in 2006.
¦ Bansal received an employment authorization document (EAD) as part of the green card process in 2007. Soon after, he left CA to start AppDynamics in 2008.
¦ AppDynamics reportedly employs over 1,200 people, according to CNBC.
¦ AppDynamics had $158.4 million in revenue in the nine months ended 31 October, an increase of more than 50% from the same period a year earlier, according to an IPO filing last month.
¦ AppDynamics describes its service as the equivalent of a 24 hour/7 days a week MRI for an organization’s website, picking up small problems before they debilitate a business and anger consumers.
¦ Bansal stepped down as the Chief Executive Officer in September 2015, handing over day-to-day operations to David Wadhwani, and taking over the role of chairman on the board.
¦ Bansal reportedly owns 14% of the company, after having diluted his stake to many venture funds over the years. So he’ll receive about $520 million (Rs 3,400 crore), according to a report in Times of India.
¦ Greylock Partners and Lightspeed Venture Partners, two early backers, each hold 21% of AppDynamics, according to Bloomberg. Institutional Venture Partners had 8.3% of the shares and Kleiner Perkins Caufield & Byers held 7.1%.
¦ The acquisition is expected to close by April 2017, subject to customary closing conditions. This is one of Cisco’s largest acquisition after its 2013 acquisition of US-based security company Sourcefire for $2.7 billion, and 2012 acquisition of video software maker NDS for $5 billion, according to Forbes and CNBC reports.
¦ When asked about his future, Jyoti said, “I’m not done creating companies. I want to keep creating companies and solving problems for the rest of my life,” as quoted by Forbes.
¦ In his career, Bansal has received more than 30 patents related to complex software systems.