US tech giant Cisco Systems Inc. (Nasdaq: CSCO) is to acquire Israeli application monitoring company Epsagon for $500 million, several sources close to the matter have told "Globes."
Epsagon, which automatically analyzes cloud applications, was founded by CEO Nitzan Shapira and CTO Ran Ribenzaft. According to PitchBook the company has raised $30 million, probably at a company valuation of between $100 and $200 million, and has thus succeeded in increasing its valuation up to five-fold in just the 18 month since completing in most recent financing round. Investors include US Venture Partners (USVP), Lightspeed Venture Partners and Stage One Ventures.
Epsagon has tripled its work force over the past year to 60. The company has been undergoing rapid growth including in its number of customers, which include major corporations and Israel startups coping with vast amounts of data.
Epsagon, which competes with Data Dog, New Relic and Lumigo, provides an end-to-end monitoring solution that enables DevOps and engineering teams to monitor, visualize, troubleshoot and quickly fix their cloud applications across any type of microservice - containers, Kubernetes, or serverless workloads. Epsagon's technology is fully automated for modern environments where the host may not be accessible, which makes traditional monitoring agents obsolete.
Cisco has previously acquired many Israeli companies including video software company NDS for $5 billion in 2012 and more recently 5G intelligence network company Sedona Systems earlier this year and cybersecurity company Portshift last year - acquisitions for about $100 million each.
Published by Globes, Israel business news - en.globes.co.il - on August 13, 2021