An ex-IIT Delhi graduate Jyoti Bansal has just sold the company he founded eight years ago in April, 2008 in the US San Francisco, AppDynamics – a leading application intelligence software platform, to Cisco for US $3.7 Billion.
After the acquisition completed, Bansal owns 14% stakes of the company. So he’ll get about US $520 million (about INR 3,400 crore).
After the acqui-hire, AppDynamics will continue to be led by CEO David Wadhwani as a new software business unit under Rowan Trollope, Cisco Senior Vice President and General Manager, IoT and Applications business.
As per Techcrunch, this acquisition is a pure data play.
Application intelligence software platform AppDynamics is based in San Francisco, was supposed to go public this morning. The IPO was highly anticipated, thanks to its status as a unicorn (a startup worth more than US $1 billion) and pent up investor demand after a slow 2016 for IPOs. The AppDynamics IPO road show, where companies pitch their shares to institutional investors, had been well-received, with the company increasing its proposed share price range this week.
But while AppDynamics was putting the finishing touches on its road show pitch decks, Nadir Shaikh, an M&A banker at Qatalyst Group, had been discussing an acquisition with potential buyers. AppDynamics had not retained Qatalyst, according to a person familiar with the deal. This was not a dual-track process, where a company prepares to go public while also shopping itself to buyers.
Jyoti Bansal graduated from IIT Delhi in 1999 and moved to the US soon after. In an article in the run-up to the IPO, Forbes magazine wrote that Bansal’s father had given him $200 so he could go to Silicon Valley.
In a blog posted just after the announcement of the acquisition, Bansal says he knew he wanted to be an entrepreneur even when he was helping his father manage his business back in India. Software was his passion, a “magic clay” that could be used “to sculpt solutions to different problems”. The Bansal community, a sub-sect of the Aggarwal community, is also known to be skilled at trade and commerce.
After graduation, Bansal shifted to Cupertino on an H-1B visa to work for a startup. He had to wait for almost eight years before he got his green card.
“I waited seven years for my employment-based green card and I wanted to leave my job and start a new company but couldn’t,” he told Forbes in a 2016 interview.
In 2005, Bansal joined Wily Technology as an architect. CA (Computer Associates) bought the company in 2006, and two years later, Bansal left CA to start AppDynamics.
Earlier in June, 2016 American Multinational Technology Company, Microsoft acquired LinkedIn for USD $196 per share in an all-cash transaction valued at USD $26.2 billion, inclusive of LinkedIn’s net cash.