VMware Inc. has agreed to acquire mobile management and security provider AirWatch for nearly $1.2 billion in cash and $365 million of installment payments and equity.
The AirWatch team will continue reporting to John Marshall, founder and CEO, and will operate within VMware’s end-user computing group led by Sanjay Poonen, executive vice president and general manager, VMware said Wednesday.
Alan Dabbiere, AirWatch co-founder and chairman, will lead a fresh AirWatch operating board, reporting to Pat Gelsinger, VMware CEO.
Gelsinger said VMware intends for the acquisition to grow the company's end-user computing portfolio in order for customers to deploy a mobile workforce.
Atlanta, Ga.-based AirWatch’s offerings will be integrated with VMware’s mobile services portfolio and the Atlanta facility will become a VMware mobile operations center.
AirWatch and VMware's boards of directors approved the acquisition and the transaction is scheduled to complete in the first quarter of 2014, pending regulatory approvals.