Cisco has convinced performance monitoring startup AppDynamics to not go public. Late today, Cisco announced a deal to acquire the startup for $3.7 billion in cash and assumed equity awards.

AppDynamics' 12 million-share IPO was expected to launch this week, and investors appeared to be responding well. The company even increased its share-price range to $12 to $14, up from $10 to $12, according to an SEC filing this morning. So much for that idea.

AppDynamics would have been valued at roughly $1.6 billion at the time of its IPO, based on the midpoint of that $12-to-$14 range. Naturally, Cisco had to beat that figure by a lot in order to close the deal.

As a point of comparison, AppDynamics competitor New Relic, which went public in 2014, has a market capitalization of around $1.7 billion.

The acquisition would turn AppDynamics into a business unit in Cisco’s IoT and Applications group, which is led by Senior Vice President Rowan Trollope. AppDynamics CEO David Wadhwani would lead that business unit and would report to Trollope.

Cisco expects to close the deal during its third quarter, which ends in April.

AppDynamics raised $315 million in six funding rounds. The last of those rounds, in 2015, reportedly pushed the company's valuation to $1.9 billion.