14 DAY TRIAL // Virtualization and cloud infrastructure solutions provider VMware is set to acquire mobile security firm AirWatch for around $1.5 billion (€1.1 billion). About $1.175 billion (€0.87 billion) will be paid in cash, while another $365 million (€269 million) represents installment payments and assumed unvested equity.
The acquisition has already been approved by the boards of both companies and is expected to close towards the end of the first quarter of 2014.
AirWatch’s mobile security solutions are complementary to VMWare’s portfolio. The acquisition will enable VMware to expand its End-User Computing group.
AirWatch Founder and CEO John Marshall will continue to supervise his team as part of WMware’s End-User Computing group. Alan Dabbiere, co-founder and chairman of AirWatch will report to WMware’s CEO, Pat Gelsinger. Dabbiere will oversee a new AirWatch operating board.
“AirWatch provides best-in-class, secure, enterprise-mobile management to thousands of businesses around the world,” Gelsinger commented on the acquisition.
“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.”
Dabbiere noted, “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.”
He added, “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.”
In the meantime, VMware has revealed some preliminary financial results for the last quarter of 2013. Revenues are expected to record a 15% increase compared to the same period of 2012, reaching $1.48 billion (€1.07 billion).