flag iconBe the first to hear the mobile news. Enter your email to join.

JM_phone

AirWatch celebrates acquisition by VMware

  • Lanier Norville By

VMware, a leader in cloud and virtualization software, has signed a definitive agreement to acquire AirWatch for approximately $1.54 billion. The deal includes approximately $1.175 billion in cash and $365 million of installment payments and assumed unvested equity.

By joining a proven innovator like VMware, AirWatch now has the opportunity to bring leading-edge solutions to market faster and more broadly to help customers optimize for the mobile-cloud world, said AirWatch CEO John Marshall in a live webcast this morning. AirWatch does not anticipate any disruption in business or customer support. Customers will continue to work with the same team they have been working with and will continue to receive outstanding support.

John Marshall shares the news with AirWatch employees worldwide in a live webcast.

John Marshall shares the news with AirWatch employees worldwide in a live webcast.

Executives from AirWatch and VMware participated in a financial analyst conference call today at 8 a.m. ET to review the acquisition, the preliminary financial results and to provide forward looking guidance. The replay of the webcast and slides will be available at http://ir.vmware.com for two months. Following the analyst call and an hour-long celebration at the Atlanta AirWatch headquarters, executives addressed employees worldwide from a stage on the AirWatch trade floor.

More than 600 Atlanta employees attended this morning's meeting, while others tuned into the live webcast.

More than 600 Atlanta employees attended this morning’s meeting, while others tuned into the live webcast.

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

“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 VMware CEO Pat Gelsinger.

handshake

Marshall shakes hands with Eschenbach, who introduced VMware’s core business and values to a crowd of AirWatch employees.

“By joining a proven innovator like VMware, we now have an opportunity to bring our leading-edge solutions to an even broader set of customers and partners to help them optimize for the mobile-cloud world,” said AirWatch chairman Alan Dabbiere. The Atlanta AirWatch headquarters is expected to expand and be the center of VMware’s mobile operations.

“Our vision is to provide a secure virtual workspace that allows end users to work at the speed of life,” said Sanjay Poonen, EVP and GM of VMware’s End-User Computing group. “The combination of AirWatch and VMware will enable us to deliver unprecedented value to our customers and partners across their desktop and mobile environments.”

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 $1 billion of additional debt to be provided by EMC. VMware will also continue with its ongoing share buyback program.

The executives closed this morning’s meetings with a round of audience questions. They urged employees to join the celebration and then get back to doing the hard work that has made the company a success. Congratulations to AirWatch and VMware!

Champagne

Employees celebrated with a champagne toast.

VMware Preliminary Q4 2013 Results

VMware today also announced preliminary financial results for the fourth quarter of 2013:

Revenues for the fourth quarter are expected to be $1.48 billion, an increase of 15 percent from the fourth quarter of 2012. License revenues for the fourth quarter are expected to be $687 million, an increase of 15 percent from the fourth quarter of 2012.

Additional Resources

  • Read the official press release
  • Read the blog post by Sanjay Poonen, executive vice president and general manager, End-User Computing, VMware
  • Connect with VMware on Twitter and Facebook
  • Wall Street Journal – VMware to buy AirWatch for 1.54 billion
  • Bloomberg Television – AirWatch Chairman Alan Dabbiere and VMware Executive Vice President and General Manager Sanjay Poonen discuss the purchase
  • USA Today – VMware buys AirWatch for 1.54 billion
  • Computerworld – VMware acquires AirWatch to boost mobile device, application management
  • ZDNet – VMware buys AirWatch for 1.54 billion, acquires mobility strategy
  • InfoWorld – Beyond Virtualization: Why VMware bought AirWatch
  • TechCrunch – VMware’s $1.5B AirWatch Buy All About the Mobile Workplace
  • VentureBeat – VMware gets serious about the mobile enterprise with $1.54B AirWatch buy
Lanier Norville

Lanier Norville

Lanier Norville has been writing and editing for online publications for six years. Before joining AirWatch, she was the editor of three medical technology magazines including the award-winning publication TechNation.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

hamburger

Blog By Region

Blog By Category:

Well, hi, there! You're one click away from reaching mobile enlightenment.


Maybe next time