VMware to acquire Airwatch

BANGALORE, INDIA: VMware Inc. has signed a definitive agreement under which VMware will acquire the enterprise mobile management and security solutions provider, AirWatch. VMware will acquire AirWatch for approximately $1.175B in cash and approximately $365M of installment payments and assumed unvested equity.

Pat Gelsinger, CEO, VMware said, "With this acquisition VMware will add a foundational element to our end-user computing portfolio that will enable our customers to turbo-charge their mobile workforce without compromising security."

"When we started AirWatch, we set out to help businesses succeed in the mobile explosion that was set to come. Now there are more than 2 billion smart phones and tablets in the world and more than half of those devices touch an enterprise," said Alan Dabbiere, co-founder and chairman, AirWatch. "By joining a proven innovator like VMware, we now have an opportunity to bring our leading-edge solutions to an even broader set of customers and partners to help them optimize for the mobile-cloud world."

Privately held and headquartered in Atlanta, GA, AirWatch is the leading provider of enterprise solutions for Mobile Device Management, Mobile Application Management and Mobile Content Management. With more than 10,000 customers globally and more than 1,600 employees across nine global offices, AirWatch's solutions give enterprises a strategic platform to securely manage a rapidly growing set of mobile devices and an increasingly mobile workforce. The Atlanta site is expected to expand and be the center of VMware's mobile operations.

"Our vision is to provide a secure virtual workspace that allows end users to work at the speed of life," said Sanjay Poonen, EVP and GM of VMware's End-User Computing group. "The combination of AirWatch and VMware will enable us to deliver unprecedented value to our customers and partners across their desktop and mobile environments."

The acquisition is expected to close during late Q1 2014 subject to regulatory approvals and customary closing conditions.