US Tech giant Cisco Systems Inc said on Tuesday that it is all set to acquire U.S. business software company AppDynamics Inc for about $3.7 billion.
The deal would be one of its largest of acquisitions in recent years as the company seeks growth in areas outside of its core networking business.
Legacy technology players like Cisco have been trying to shift their businesses to stay ahead of technology developments, such as the rise of cloud computing, that could otherwise threaten their core businesses.
Cisco's announcement comes a week after Hewlett-Packard Enterprise Co said it would buy privately held cloud software company SimpliVity for $650 million in cash, as it looks to expand its position in hybrid cloud platforms.
AppDynamics, based in San Francisco, will be become part of Cisco's Internet of Things and Applications Unit, reporting to Rowan Trollope. Cisco's last large deal, a $1.4 billion acquisition of Jasper last year, is also part of that unit.
AppDynamics makes software that manages and analyzes applications and it has about 2,000 paying customers, including Citrix Systems Inc, eHarmony, Kraft Inc, NASDAQ Inc and Nike Inc.