VMware to aquire mobile security company AirWatch

Well, it seems that the M&A activity that we saw with FireEye picking up Mandiant earlier this month was just the tip of the iceberg in the market.

This morning comes news that VMware has made a move to acquire mobile security firm AirWatch. This a mobile security firm that claims a customer base of approximately 10,000 in 150 different countries.

From VMware Press Release:

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 co-founder and chairman, will be overseeing a new AirWatch operating board which will report to Pat Gelsinger, VMware chief executive officer.

Wow, that's roughly just over one Instagram in cash. The original investors Accel Partners and Insight Venture Partners should make out nicely with this deal. This is some serious money for a security firm. Seems that they are shoring up their defenses against the Amazon juggernaut. 

From Reuters:

"With mobile device usage becoming more prevalent in the workplace, we believe this acquisition will prove strategic in complementing and enhancing VMWare's end-user computing business," ISI Group analyst Brian Marshall said in a note.


VMWare said it would pay about $1.18 billion in cash and about $365 million in installment payments and assumed unvested equity.

Looks like VMware will be making a deeper push into the enterprise this year. 

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