VMware acquires enterprise-mobile management vendor AirWatch for $1.2 billion

VMware will acquire enterprise-mobile management vendor AirWatch for approximately $1.175 billion in cash and approximately $365 million of instalment payments and assumed unvested equity.

AirWatch team will not undergo any significant changes, following the acquisition. Its team will continue to report to AirWatch CEO John Marshall.

As part of the deal, AirWatch will be part of VMware’s End-User Computing group, led by Sanjay Poonen, EVP and GM.

The acquisition enables VMware customers to adopt mobility with extra security.

Headquartered in Atlanta, GA, AirWatch offers enterprise solutions for mobile device management, mobile application management and mobile content management.

VMWare buys AirWatch

AirWatch has more than 10,000 customers globally and more than 1,600 employees across nine global offices. It’s a privately held company.

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.

This acquisition will expand VMware’s End-User Computing group; AirWatch’s offerings will form an expanded portfolio of mobile solutions that are complementary to VMware’s portfolio.

The acquisition will be funded through a combination of cash and proceeds from approximately $1 billion of additional debt to be provided by EMC.

Meanwhile, VMware revenues for the fourth quarter are expected to be $1.48 billion, an increase of 15 percent from the fourth quarter of 2012.

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