VMware buys Airwatch

Cloud and virtual desktop provider VMware will buy Airwatch, a mobile device management and security company, in a deal worth £930m.

The deal means VMware, the market leader in virtualisation, which provides virtual desktop infrastructure to several NHS trusts, will be able expand its portfolio and gain a stronger focus on mobile device management.

The US company has long been looking to move towards more mobile solutions.

Pat Gelsinger, chief executive officer at VMware said that Airwatch provides the best secure enterprise/mobile management system 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."

Sanjay Poonen, executive vice president and general manager at VMware’s end user computing unit, said: "Our vision is to provide a secure virtual workspace that allows end users to work at the speed of life."

In his blog, he added that the two companies had few overlapping products. “As such, Airwatch will become the focal point for all of VMware’s mobile development activities.

"As we integrate the Airwatch and VMware portfolio, customers will continue to benefit from unrivalled innovation to securely manage their users, applications and content – across both desktops and mobile environments – on-premise or in the cloud."

The two companies have signed a “definitive agreement” and the deal is expected to close late this financial quarter. VMware will buy Airwatch for £707m ($1.175 billion) in cash and about £219m ($365m) in instalment payments and assumed unvested equity.