VMware Bought A Security Firm For $1.5 Billion

VMware, a cloud software maker, will buy the privately held security company AirWatch for around $1.17 billion in cash and approximately $365 million of installment payments and assumed unvested stock options.

The acquisition will give VMware a foothold in mobile security, which has increasingly become an important section of the market.

Atlanta-based AirWatch will become part of VMware, but its 1,600 employees will still report to AirWatch founder and CEO John Marshall.

"AirWatch provides best-in-class, secure, enterprise-mobile management to thousands of businesses around the world," said Pat Gelsinger, VMware's CEO, in a statement. "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."