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Highlights
- BlackBerry sells Cylance security business to Arctic Wolf for US$160 million, including cash and shares.
- Arctic Wolf to pay US$80 million in cash at closing, with an additional US$40 million a year later.
- BlackBerry acquired Cylance in 2019 for US$1.4 billion.
BlackBerry Ltd. (TSX:BB) has announced the sale of its Cylance security business to Arctic Wolf, a leading security software and services company, for a total of US$160 million. The deal consists of cash and equity, with Arctic Wolf paying US$160 million in cash, subject to certain adjustments, and approximately 5.5 million common shares of the company, which is privately held.
Following purchase price adjustments, BlackBerry will receive around US$80 million in cash at the closing of the deal, and another US$40 million in cash one year after the deal closes. The transaction, which is expected to close in BlackBerry's fourth fiscal quarter, is still subject to customary closing conditions.
BlackBerry acquired Cylance in February 2019 for US$1.4 billion, marking the company’s major push into artificial intelligence and cybersecurity. The sale of Cylance marks a significant shift in BlackBerry's focus as it continues to streamline its operations and prioritize its core business areas.
