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Trump tax reform should lead to more M&A, says Cisco CEO Chuck Robbins

The Trump administration's tax reform plans should be good for business, Cisco CEO Chuck Robbins told CNBC on Wednesday.

"The overall move to lower tax rates, as well as repatriation, we think creates an opportunity, to do all these things," Robbins told "Squawk on the Street." "Dividends, M&A, buybacks, as well as create jobs here in the United States. So we're pretty excited and we're looking forward to see this play out over the next few months."

The CEO's comments came one day after the company swooped in and outbid the year's first tech IPO.

"We will definitely continue to leverage our ability to do M&A where it makes sense," Robbins said.

Chuck Robbins, CEO of Cisco
Ashlee Espinal | CNBC
Chuck Robbins, CEO of Cisco

Cisco announced a deal to buy software maker AppDynamics for $3.7 billion in a move to boost its enterprise software product lineup. The software developer was scheduled to sell shares to the public at a valuation of $1.72 billion.

Robbins said that Cisco was a customer of AppDynamics and was going down the path of a partnership, when it became clear an acquisition was "the right answer." The deal will create more business insights across the cloud for Cisco's Fortune 500 clients, and is expected to close by April.

"If you look at AppDynamics, No.1, they are the leader in their space," Robbins said. "Secondly, they are growing almost twice as fast as their next nearest competitor. They are growing faster than any publicly traded software company today."

As more businesses move from on-site servers to the cloud, Cisco is creating cooler products and using its research and acquisitions to stay relevant, Robbins said. He has orchestrated at least 17 acquisitions since he took the helm at Cisco in 2015.

Still, despite "positive emotion in the overall marketplace," Robbins said that Cisco had planned for several outcomes from the new administration, and that most of his customers are in a "wait and see mode" over issues like tax reform for the next few quarters.

Robbins said that he's been in meetings with President Donald Trump where there was a "great deal" of dialogue about tax reform and the issues that matter to the technology community, such as immigration and trade.

"Everything we heard was constructive, we feel like they're moving in the right direction from a business perspective," Robbins said. "But I would say the moves we're making are moves we'd make independent of anything that's going on there."

— CNBC's Elizabeth Gurdus and Ari Levy contributed to this report.