VMWare to acquire AirWatch for $1.54 billon

VMware is making the largest acquisition in the company’s history to move into the mobile space: the purchase of enterprise mobile management and security company AirWatch for about $1.54 billion.

The purchase price includes $1.175 in cash and an additional $365 million in installment payments and assumed unvested equity for privately-held AirWatch.

“AirWatch provides best-in-class, secure, enterprise-mobile management to thousands of businesses around the world,” said Pat Gelsinger, CEO of VMware.  “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.”

Atlanta-based AirWatch has more than 10,000 customers around the world and more than 1,600 employees in nine global offices. VMWare said that the Atlanta site is expected to expand and become the center of its mobile operations. AirWatch’s offerings will be integrated into VMWare’s End-User Computing group portfolio of solutions.

The deal is expected to close late in the first quarter.

Meanwhile, VMWare also announced preliminary results for the fourth quarter, with revenues expected to up 15% year-over-year to $1.48 billion and exceeding the company’s predictions.

Jonathan Chadwick, CFO and executive VP for VMware said that he was “delighted with our overall Q4 performance, with total revenue expected to exceed the high end of our guidance range.”