VMware Pays $1.5 Billion for Mobile Device Management Vendor
Published on: 22nd Jan 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
VMware has announced that it is paying USD1.5 billion to buy the provider of enterprise mobile management and security solutions AirWatch. VMware will acquire AirWatch for approximately $1.175B in cash and approximately $365M of installment payments and assumed unvested equity.
The AirWatch team will continue to report to founder and chief executive officer John Marshall as part of VMware's End-User Computing group, led by Sanjay Poonen, EVP and GM. Alan Dabbiere, AirWatch's co-founder and chairman, will be overseeing a new AirWatch operating board which will report to Pat Gelsinger, VMware chief executive officer.
"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." said Pat Gelsinger, chief executive officer, VMware.
Privately held and headquartered in Atlanta, GA, AirWatch is the 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 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 has been approved by the boards of directors of both VMware and AirWatch and the acquisition is expected to close during late Q1 2014 subject to regulatory approvals and customary closing conditions.