So what are the differences and common facts ?
Except that both companies have participated to The IT Press Tour - SimpliVity in June 2013 for the 23rd edition - and AppDynamics 2 times in March 2016 for the 18th edition and in June 2014 for the 13th edition - that boosts their visibility, they both play in a hot market segment and are clearly leaders in their respective domain - Hyperconvergence for SimpliVity and Application Performance Management for AppDynamics.
|Market Segment||Hyperconvergence||Application Performance Management|
|Acq. Amount||$650M (cash)||$3.7B|
|Acq. Date||Jan. 2017||Jan. 2017|
|Emp. #||750 (June 2016)||1186 (Oct. 2016)|
Born in 2008 for AppDynamics and 2009 for SimpliVity, they also raised ton of money - SimpliVity $276M and AppDynamics $314M - and people spoke about huge amount for potential acquisition for SimpliVity in November, around 3 to $4B from HPE, and huge amount as well for AppDynamics working on their IPO for months. So many similar sign between the two but at the end 2 different destinies:
- No IPO and acquisition for just $650M in cash for SimpliVity, again a very good deal for HPE. SimpliVity was not in a IPO position and revenue was not in the right range, raising money was also a challenge with a too big valuation that creates a big divergence point, these elements seam to be the key difference factor between the 2 companies and acquisition amount.
- IPO process started with a date of 1st trade this week (tomorrow ?) with a goal to raise $2B that finally morphs in an acquisition by Cisco for $3.7B announced yesterday, Cisco thinking that the price could be higher later, potentially yes.
2017 starts with 3 acquisitions, at least the ones I pay attention to, for a total in the range of $4.4-4.5B. Interesting start...