Yes it does, you need to install the relevant agents on your app servers and web servers if you want to monitor the traffic coming through web servers into your app servers. If you only want to monitor the performance of your application once the request comes in, just install the .NET agent on the app servers. Most of the discovery of the business transactions and backends(uninstrumented nodes) is out of the box, if you find that your transactions are not discovered you may want to configure them in the transaction detection section. You can also create custom exit points .
Let me know if you want to know more. You can also monitor the Resource utilisation of the resources(app servers) using the metric browser and for most of that part you can set health rules and policies to alert.