AirWatch has signed a definitive agreement to be acquired by VMware, Inc. AirWatch currently provides mobile management and security solutions and the company has said that it does not expect the acquisition to alter service to its customers. VMware will acquire AirWatch for approximately $1.175 billion in cash and approximately $365 million of installment payments and assumed unvested equity.
In a statement, Katie O’Laughlin a company spokesperson said, “customers will continue to work with the same team they have been working with and will continue to receive the same outstanding support, they always have. The AirWatch team will continue to report to CEO John Marshall as part of VMware’s End User Computing business. AirWatch Co-founder and Chairman, Alan Dabbiere will be overseeing a new AirWatch Operating Board which will report to Pat Gelsinger, VMware CEO.”
AirWatch is based in Atlanta, Georgia and has more than 1,600 employees. The Atlanta site is expected to expand and be the center of VMware’s mobile operations.
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.