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(GuruFocus) Wunderlich believes Cisco Systems, Inc. (NASDAQ: CSCO ) may have captured a unicorn in its $3.7 billion purchase of AppDynamics, which helps businesses identify and fix bugs in their applications. AppDynamics would boost Ciscos security products and the companys ability to scale performance management and security in the IoT and artificial intelligence space. AppDynamics would also complement Ciscos Titration Analytics, which is the network/infrastructure performance management platform that was launched in June. To IPO Or Be Bought Interestingly, AppDynamics was on a path to price its IPO later this week, and the brokerage believes the consideration is a premium of more than 60 percent above IPO price discussion. In our view, the price reflects a negotiation to capture after market performance of a successful IPO with price range elevation during the course of the road show, analyst Matthew Robison wrote in a note. AppDynamics' Peers AppDynamics, the products of which can be configured to run on both cloud (SaaS) and premise, competes with firms such as CA, Inc. (NASDAQ: CA ),New Relic Inc (NYSE: NEWR ),Splunk Inc (NASDAQ: SPLK ), Hewlett Packard Enterprise Co (NYSE: HPE ) and Microsoft Corporation (NASDAQ: MSFT ). Based on nine months of data for the period ending October, annualized billings of AppDyanmics were at a run rate of over $315 million and grew nearly 44 percent year-over-year. Looking Forward Robison expects Cisco to retain the AppDynamics sales force and function as an overlay to address applications buyers.

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