Cisco intended to buy AppDynamics, which was just days away from going public. The sale ensured instant success for both its creator and his team.
It is about Jyoti Bansalfounder of the company AppDynamics softwarewho in 2017 made a momentous decision. At 46 years old, Bansal sold his startup to Cisco for US$3.7 billionwhich allowed 400 employees become millionaires overnight.
Employees owned shares in the company
Cisco I intended to buy AppDynamicswhich was just days away from going public. The sale to Cisco secured a instant success both for him and for his team. “I knew I would do well financially, but what really motivated me was the impact this would have on my employees,” Bansal said.
It was so 400 AppDynamics employees saw their stock soargenerating profits of at least 1 million dollars for each of them. Additionally, several of these employees achieved even higher incomes, with several dozen of them exceeding $5 million.
“These results not only change people’s lives, but also those of their families.“Bansal confirmed.
A decision to reduce risks
Bansal had to choose whether to continue independently, including going public, or do so jointly with Cisco. “It would have taken three to four years of perfect execution to reach the value that Cisco was offering us at that time,” Bansal explained.
Accepting the offer, he noted, made it possible to considerably reduce the risks for his employees.which was a key factor in his decision.
“Reducing risk was a significant impact for everyone,” he said. By avoiding the volatility and potential pitfalls of an IPO, Bansal ensured that his employees were protected financially, which was one of his main concerns as a founder.
“After the sale, I felt that maybe I could have continued growing AppDynamics“He confessed in a recent interview. However, he created a successful software chain and then sold it to a telecommunications giant. He turned 400 employees into millionaires.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
