Networking equipment manufacturer Cisco agreed yesterday to acquire ThousandEyes, a US-based network management software provider backed by internet and technology conglomerate Alphabet and enterprise software producer Salesforce.
The price was reported by Bloomberg as being approximately $1bn, a figure confirmed to CNBC by a person familiar with the matter. Cisco expects the transaction to close by the end of next month.
Founded in 2010, ThousandEyes provides cloud analytics software that collects data from a range of access points, such as data centres and consumer devices, to identify potential sources of disruption and ensure websites, applications and services are delivered optimally.
Cisco will integrate the company’s technology into its newly formed Networking Services division and expects the combined capabilities to help clients accelerate their digital transformation.
ThousandEyes’ co-founder and CEO, Mohit Lad, will supervise its activities as general manager of ThousandEyes once the acquisition is complete. Co-founder and chief technology officer Ricardo Oliveria will continue to be responsible for the product vision and innovation strategy.
The executives will report to Todd Nightingale, senior vice-president and general manager of Cisco Enterprise Networking and Cloud.
ThousandEyes had raised more than $110m in funding. GV, a corporate venturing vehicle for Alphabet, led its $50m series D round in February 2019, investing with Salesforce unit Salesforce Ventures, Thomvest Ventures, Sequoia Capital, Sutter Hill Ventures and Tenaya Capital.
The round reportedly valued the company at $670m. GV had already participated in its $35m series C round in 2016, which was led by Tenaya Capital and which also featured Sequoia Capital and Sutter Hill Ventures.
Salesforce Ventures first invested in ThousandEyes in 2014 as part of a $20m series B round led by Sutter Hill Ventures and backed by existing investor Sequoia Capital and assorted individuals.
