By RTT News,
January 22, 2014, 07:14:00 AM EDT
(RTTNews.com) - Virtualization software maker VMware, Inc. ( VMW ) has agreed to acquire AirWatch, a provider of enterprise mobile management and security solutions, for nearly $1.175 billion cash and around $365 million of installment payments and assumed unvested equity. The AirWatch team would continue reporting to Founder and Chief Executive, John Marshall, as part of VMware's End-User Computing group, headed by Sanjay Poonen, EVP and GM. Alan Dabbiere, AirWatch's co-founder and chairman, would be overseeing a new AirWatch operating board which would report to Pat Gelsinger, VMware chief executive.
Gelsinger stated, "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."
VMware said this transaction would expand its End-User Computing group; AirWatch's offerings would form an expanded portfolio of mobile solutions that are complementary to VMware's portfolio. The acquisition has been approved by the boards of both VMware and AirWatch and the deal may close during late first quarter 2014. The acquisition would be funded via. a combination of balance sheet cash and proceeds from about $1 billion of additional debt to be provided by EMC. Further, VMware would continue with its ongoing share repurchase program.
In addition, the Palo Alto, California-based company posted preliminary fourth-quarter 2013 total revenues, as reported, of $1.48 billion.
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