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Follow UsVmware and AirWatch announced that they have signed a definitive agreement under which VMware will acquire AirWatch, the provider of enterprise mobile management and security solutions.
VMware will acquire AirWatch for approximately $1.175bn in cash and approximately $365nm of installment payments and assumed unvested equity. The AirWatch team will continue to report to founder and CEO 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, CEO, Vmware.
"AirWatch provides best-in-class, secure, enterprise-mobile management to thousands of businesses around the world," said Pat Gelsinger, CEO, VMware. "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," he added.
"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 2bn 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.
"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.
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. The acquisition will be funded through a combination of balance sheet cash and proceeds from approximately $1bn of additional debt to be provided by EMC. VMware will also continue with its ongoing share buyback program.