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VMware to buy AirWatch for $1.522 billion

Staff writer |
VMware will acquire AirWatch, a provider of enterprise mobile management and security solutions for approximately $1.175 billion in cash and approximately $365 million of installment payments and assumed unvested equity.

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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.

"AirWatch provides best-in-class, secure, enterprise-mobile management to thousands of businesses around the world. 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," said Pat Gelsinger, chief executive officer, VMware.

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.

The acquisition will be funded through a combination of balance sheet cash and proceeds from approximately $1B of additional debt to be provided by EMC. VMware will also continue with its ongoing share buyback program.


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