VMWare Announces Acquisition of AirWatch for $1.5 Billion

VMware, Inc. (VMW), the global leader in virtualization and cloud infrastructure, and AirWatch today announced that they have signed a definitive agreement under which VMware will acquire AirWatch, the leading provider of enterprise mobile management and security solutions. 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 cofounder and chairman, will be overseeing a new AirWatch operating board which will report to Pat Gelsinger, VMware chief executive officer.

“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.”

“AirWatch provides best-in-class, secure, enterprise-mobile management to thousands of businesses around the world,” said 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.”

Privately held and headquartered in Atlanta, GA, AirWatch is the leading 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 strategic platform to securely manage a rapidly growing set of mobile devices and an increasingly mobile workforce.

“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.”

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.