Cisco acquires app monitoring startup Epsagon for $500 million

American technology company Cisco announced on Friday that it’s set to acquire Israel-based application monitoring startup Epsagon.

Although the companies didn’t disclose the financial terms of the deal, sources familiar with the matter told Israel’s financial newspaper Globes that Cisco will pay Epsagon $500 million for the acquisition. 

‘’I’m pleased to announce our intent to acquire Epsagon Ltd., a privately held, modern observability company with offices in New York and Tel Aviv,’’ wrote Liz Centoni, Cisco’s Chief Strategy Officer and GM of Applications.

‘’Named by Gartner as a “Cool Vendor in Performance Analysis”† with expertise in distributed tracing solutions for modern applications and technologies, including containers and serverless environments, Epsagon will play a key role in expanding and accelerating Cisco’s comprehensive Full-Stack Observability roadmap,” she added.

Founded in 2017 by Nitzan Shapira, Ran Ribenzaft, Epsagon enables customers to monitor modern apps and technologies created with containers and Kubernetes. It has raised over $30 million so far and its investors include Lightspeed, USVP, Stage One and DTCP. 

‘’Epsagon’s technology and talent align well with Cisco’s vision to enable enterprises to deliver unmatched application experiences through industry-leading solutions with deep business context,’’ wrote Centoni. ‘’By contextualizing and correlating visibility and insights across the full stack, teams can improve collaboration to better understand their systems, solve issues quickly, optimize and secure application experiences and delight their customers.’’

Once the acquisition is complete, Epsagon’s team will join Cisco’s Strategy, Incubation and Applications group. 

Cisco also acquired app and business monitoring company AppDynamics in 2018 for $3.7 billion and network intelligence company ThousandEyes in 2020 for $1 billion.