Cloud software maker VMWare to buy mobile security firm AirWatch for $1. 54 bn

Cloud software maker VMWare Inc yesterday agreed to buy mobile security company AirWatch for $1. 54 billion.

Palo Alto, California-based VMware will pay $1.18 billion in cash, $365 million in installment payments and assumed unvested equity.

VMware, majority owned by EMC Corp, the world's largest maker of storage computers, plans to fund the transaction through a combination of cash and proceeds from about $1 billion of additional debt to be provided by EMC.

Founded in 2003, Atlanta-based AirWatch is the world's largest mobile security and enterprise mobility management provider.

AirWatch's Enterprise Mobility Management Platform offers mobile device, email, application, content, laptop and browser management solutions.

AirWatch, backed by Insight Venture Partners and Accel Partners, has more than 10,000 customers globally and 1,600 employees in nine offices around the world.

''When we started AirWatch, we set out to help businesses succeed in the mobile explosion that was set to come. Now there are more than 2 billion smart phones and tablets in the world and more than half of those devices touch an enterprise,'' said Alan Dabbiere, co-founder and chairman, AirWatch.

''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,'' he added.

''AirWatch provides best-in-class, secure, enterprise-mobile management to thousands of businesses around the world,'' said Pat Gelsinger, chief executive officer, 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.''

With 2012 revenues of $4.61 billion, California-based VMware is the leader in virtualization and cloud infrastructure solutions.