VMware, Inc. (NYSE:VMW) has acquired mobile device management company AirWatch. The transaction was worth $1.17 billion in cash. VMware is also going to pay $365 million in installment payments and unvested stock options. AirWatch will enable VMware to strengthen their mobile offerings and end-user computing strategies. VMware’s is known for focusing on desktop virtualization and enterprise services for tablets and smartphones.
John Marshall will remain as the CEO of AirWatch. AirWatch will be rolled into VMware’s end-user computing group. AirWatch has over 10,000 customers and 1,600 employees. AirWatch is known for handling corporate and employee owned smartphones and tablets. Enterprises generally have security concerns about employees bringing their own smart-devices to work.
In related news, VMware announced their fourth quarter results and provided their outlook for 2014. VMware said that they were expecting Q4 results to hit $1.48 billion, which is up 15% from a year ago. VMware’s license revenue is around 15% up for Q4 compared to a year ago. VMware is expecting AirWatch to contribute around $75 million in 2014 revenues.