US multinational tech company Cisco has acquired AppDynamics, a San Francisco-based app performance management and IT operations analytics company, for approximately $3.7bn (£2.9bn) in cash and assumed equity awards.

Through the acquisition, the pair intend to provide customers with ‘intelligent and actionable insights, helping them make speedy business decisions and improve business performance’.

“Applications have become the lifeblood of a companys success. Keeping those apps running and performing well has never been more important. Unfortunately, that job has only gotten harder, as IT departments and developers struggle with a tangled web of disconnected, complex data thats hard to understand,” said Rowan Trollope, Cisco SVP and GM of Ciscos internet of things (IoT) and applications business Group.

AppDynamics will continue to be led by CEO and president David Wadhani as a new software business unit in Cisco’s IoT and applications business, reporting to Trollope. The acquisition is expected to close in Q3 of Ciscos fiscal year 2017, subject to customary closing conditions.

Wadhani concluded: “With digital transformation, companies must re-define their relationships with customers through software. Were excited to join Cisco, as it will enable us to help more companies around the globe.”