Source: VMware (via ZDNet)

VMware will acquire AirWatch, a mobile device management company, in a $1.17 billion cash deal that will give the virtualization software provider a play in mobility. VMware will also pay $365 million in installment payments and unvested stock options.

Mobile device management has been a hot sector desperately in need of consolidation given there are more than 100 vendors. Large enterprises increasingly want mobile device management put together with content management and collaboration.

VMware's spin is that AirWatch will give it a foothold in mobility as well as its end-user computing strategy, which revolves around desktop virtualization and delivering enterprise apps to tablets and smartphones.