VMware, Citrix, SAP lower following AirWatch deal; BlackBerry still higher


VMware (VMW -1.2%), parent EMC (EMC -1.3%), Citrix (CTXS -2%), and SAP (SAP -1.5%) are all lower following news of VMware's $1.54B acquisition of leading mobile device management (MDM) software firm AirWatch.

Citrix (thanks to the Zenprise acquisition) and SAP (through its Sybase unit) compete with AirWatch. As does BlackBerry (BBRY +4.6%), which remains higher following news of its real estate sale plans.

AirWatch's products, which also include mobile app management and security solutions, complement VMware's Horizon Workspace, which provides a secure, siloed workspace for business apps and files on mobile devices. With Citrix and SAP already offering an array of complementary mobile software tools for enterprises, VMware's move is in part an attempt to keep pace.

AirWatch, Citrix, SAP, and BlackBerry, along with other firms such as IBM (previous) and Good Technology, are trying to profit from growing enterprise interest in MDM solutions, which help companies cope with the ongoing bring-your-own-device (BYOD) trend.

In tandem with the acquisition, VMware has reported preliminary Q4 revenue of $1.48B (+15% Y/Y), slightly above a $1.47B consensus.  Q4 license revenue is expected to come in at $$687M (+15%), within a guidance range for 12%-16% growth. VMware's full Q4 results are due on Jan. 28.

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Comments (5)
  • LYogi
    , contributor
    Comments (3201) | Send Message
     
    At the Airwatch valuation, based on # of customers, Blackberry is valued at $22/share on BES ALONE.

     

    do the math.

     

    (how much for BBM, QNX,, Real Estate, Cash?)

     

    new price target has to be $30+
    22 Jan 2014, 09:48 AM Reply Like
  • Chris Lau
    , contributor
    Comments (4234) | Send Message
     
    Let's not get carried away. It's << only >> worth $20 by the end of this year.
    I'm keeping my ears close to the ground with BES activations, and BBM Channels monetization.
    22 Jan 2014, 12:39 PM Reply Like
  • Thurai sivakumaran
    , contributor
    Comments (29) | Send Message
     
    Agree with LYogi
    22 Jan 2014, 09:55 AM Reply Like
  • contrarianwise
    , contributor
    Comments (1360) | Send Message
     
    Citron report called the fireworks--said same thing L Yogi--called for IPO and not a take out
    22 Jan 2014, 10:39 AM Reply Like
  • contrarianwise
    , contributor
    Comments (1360) | Send Message
     
    up 8% and not even high noon yet
    22 Jan 2014, 12:15 PM Reply Like
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