BlackBerry Sells Cylance for $160 Million in Significant Retreat from Previous Ambitions

BlackBerry sells Cylance for $160M, a fraction of the $1.4B it paid in 2018

In a surprising move, BlackBerry has announced that it is selling its cybersecurity business, Cylance, to Arctic Wolf for $160 million. This drastic drop in valuation from the original $1.4 billion price tag is a stark reminder of the challenges faced by BlackBerry’s once-promising cybersecurity division.

The sale will see BlackBerry offload its Cylance assets to Arctic Wolf in exchange for cash and shares. Under the deal, BlackBerry will receive approximately $80 million at closing, with the remaining amount due a year later. In addition, BlackBerry will also acquire roughly 5.5 million common shares of Arctic Wolf.

“We see this transaction as a win-win for our shareholders and all other stakeholders,” said BlackBerry CEO John Giammatteo in a statement. “Our customers will realize the benefits of continuity of service and the expertise that a leading platform company like Arctic Wolf brings to the table. We are confident that Cylance’s endpoint products will continue to thrive under Arctic Wolf’s ownership.”

The move marks a significant departure from BlackBerry’s previous stance on Cylance, which it acquired in 2018 for $1.4 billion. The company had hoped to leverage its cybersecurity expertise to drive growth and expand its presence in the market.

However, the deal has ultimately failed to deliver the expected returns, with the valuation dropping precipitously. This sale marks a major retreat from BlackBerry’s ambitious plans for Cylance, which had been touted as a key driver of company growth.

Cylance, which specializes in endpoint security, will now be integrated into Arctic Wolf’s portfolio of cybersecurity solutions. The move is seen as a strategic play by Arctic Wolf to expand its presence in the highly competitive cybersecurity market.

“The approach to endpoint security taken by Cylance is fundamentally unique,” said Arctic Wolf’s Chief Technology Officer Schiappa. “We are excited to bring this innovative technology to our customers and further solidify our position as a leader in the cybersecurity space.”

The acquisition marks Arctic Wolf’s sixth deal since its founding in 2012, further solidifying its position as a dominant player in the industry.

Cylance’s customers can rest assured that their endpoint security products will continue to be fully supported under Arctic Wolf’s ownership.

Source: techcrunch.com