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VMware buys mobile security startup Airwatch to bolster product offering

Hands over $1.54bn for the firm
Wed Jan 22 2014, 17:25

ENTERPRISE SOFTWARE VENDOR VMware will buy mobile management and security startup outfit Airwatch for $1.54bn, or about £930m.

The firm announced today that the deal has been approved by both companies' boards and is forecast to close by the end of this quarter.

The deal will see VMware, which also announced estimated revenue of $1.48bn for the fourth quarter of 2013, pay $1.175bn in cash and $365m in installment payments.

Airwatch has nine offices worldwide with a workforce of 1,600 people and lists over 10,000 global customers.

The acquisition, which will help redefine VMware's product portfolio and bring it more up to date with the industry's threat landscape, will see the integration of Airwatch staff into the company's End-User Computing Group, with the team working from its Atlanta base. VMware said it will continue to answer directly to Airwatch founder and CEO John Marshall, who will report to ex-Intel executive and VMware CEO Pat Gelsinger.

VMware EVP and GM of the End-User Computing group Sanjay Poonen said that the company plans to expand Airwatch's Atlanta offices to become the centre of its mobile operations.

"Our vision is to provide a secure virtual workspace that allows end users to work at the speed of life," he said. "The combination of Airwatch and VMware will enable us to deliver unprecedented value to our customers and partners across their desktop and mobile environments."

Almost a year ago, VMWare announced a two percent increase in quarterly profits despite an impressive 22 percent increase in sales, and announced 900 job cuts.

The virtualisation specialist is one many firms to acquire security companies over the past year. Advanced threat specialist Fireeye announced plans to buy end-point protection firm Mandiant earlier in January for $1bn. µ


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