VMware expands into mobile security with AirWatch acquisition

23 January 2014 | Sophie Donoghue


Cloud software provider VMware has announced its acquisition of mobile security company AirWatch for $1.54 billion.

The move will allow VMware to expand its product offering into the business of mobile device management.

"With this acquisition, VMware will add a foundational element to our end-user computing portfolio that will enable our customers to turbocharge their mobile workforce without compromising security," said Pat Gelsinger, CEO of VMware.

The deal has been approved by the boards of both companies and is predicted to be finalised by the end of Q1 2014.

ABI Research estimates that the mobile security market is a business which will double to more than $1 billion by 2015, with expectations that Google, Apple and Microsoft will look to bolster their presence in the mobile enterprise market.

UBS analyst Amitabh Passi has argued that the deal could be a threat to handset provider BlackBerry, which has been investing in security products.

The acquisition is VMware’s second major deal in a year and a half, following its $1.26 billion acquisition of Nicira – a provider of network virtualisation software – in 2012.