AirWatch Co-Founder and Chairman Alan Dabbiere presents at CTIA's MobileCon event.  VMware, which specializes in software-based network virtualization and cloud infrastructure, Wednesday announced that it will acquire device management specialist AirWatch for approximately $1.175 billion in cash and approximately $365 million of installment payments and assumed unvested equity. 

VMware said the acquisition will allow it to expand its end-user computing group. The company said 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. 

According to a press release, 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 co-founder and chairman, will be overseeing a new AirWatch operating board which will report to Pat Gelsinger, VMware's CEO.

Based in Atlanta, GA, AirWatch counts over 1,600 employees across nine global offices, AirWatch’s solutions give enterprises a strategic platform to securely manage a rapidly growing set of mobile devices and an increasingly mobile workforce. The Atlanta site is expected to expand and be the center of VMware’s mobile operations. 

 VMware Wednesday also reported expectations for fourth quarter earnings. The company forecast revenues of $1.48 billion, an increase of 15 percent from the fourth quarter of 2012.