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Wednesday, January 22, 2014

RPT-VMware to purchase mobile security firm AirWatch for $1.54 bln, (NYSE: VMW)

Cloud software maker VMware Inc said it would purchase privately held mobile security company AirWatch for $1.54 billion to tap into rising demand from companies to secure the smartphones and tablets used by employees.While some analysts view the deal as a threat to BlackBerry Ltd , which has long been the go-to for companies looking for security products, others say the deal could spur more acquisitions in the mobile security market.VMware itself has entered this market recently. Its main business is making virtualization software, which creates a virtual machine that acts like a real computer. This helps companies cut IT costs by saving on server and storage space."AirWatch will be the center of our mobile activities," CEO Pat Gelsinger told Reuters. "We are really bringing together the strength we have in PCs and desktops with AirWatch's in the mobility space."

VMware, Inc. is the provider of virtualization infrastructure solutions utilized by organizations to help transform the way they build, deliver and consume information technology (IT) resources. Shares of VMW traded higher by 1.38% or $1.34/share to $98.70. In the past year, the shares have traded as low as $64.86 and as high as $101.52. On average, 2113660 shares of VMW exchange hands on a given day and today's volume is recorded at 3962765.