US technology giant Cisco Systems Inc. (Nasdaq: CSCO) will buy an Israeli application monitoring company Epsagon for $ 500 million, several sources close to the subject told Globes.
Epsagon, which automatically analyzes cloud applications, was founded by CEO Nitzan Shapira and CTO Ran Ribenzaft. According to PitchBook, the company raised $ 30 million, probably between $ 100 million and $ 200 million, and managed to increase its estimate up to five times in just 18 months since the end of the last round of funding. Investors include US Venture Partners (USVP), Lightspeed Venture Partners and Stage One Ventures.
Epsagon has tripled its workforce in the last year to 60. The company is undergoing rapid growth, including the number of customers, which include large corporations and Israeli startups dealing with a huge amount of data.
Epsagon, which competes with Data Dog, New Relic and Lumigo, provides an end-to-end tracking solution that allows DevOps and engineering teams to monitor, visualize, troubleshoot and quickly fix their cloud applications on any type of microservice-containers, Kubernetes, or server-free loads. Epsagon technology is fully automated for modern environments where the host may not be available, making traditional surveillance agents obsolete.
Cisco previously bought many Israeli companies, including video software company NDS for $ 5 billion in 2012, and recently 5G intelligence network Sedona Systems earlier this year and cybersecurity company Portshift last year – purchases of about $ 100 million dollars each.
Posted by Globes, Israeli Business News – en.globes.co.il – August 13, 2021