VMware buys AirWatch
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VMware buys AirWatch

VMware (http://www.vmware.com), a virtualization software company that makes products such as VMware fusion and VMWare Workstation, has agreed to buy AirWatch (http://www.air-watch.com) for as much as US$1.54 billion, adding technology to help businesses manage and protect mobile devices.

VMware will pay $1.18 billion in cash and $365 million in installment payments and assumed unvested equity. AirWatch marks the second VMware acquisition of more than $1 billion in 18 months, after the 2012 purchase of Nicira, whose technology helps networks work more efficiently. AirWatch makes mobile device, email, application, content, laptop and browser management solutions.

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.

"AirWatch provides best-in-class, secure, enterprise-mobile management to thousands of businesses around the world," says Pat Gelsinger, chief executive officer, 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."

"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."

"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."

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