Home / Tech / BlackBerry to buy security firm Good Technology for $425 million

BlackBerry to buy security firm Good Technology for $425 million

TORONTO: Canada’s BlackBerry Ltd will buy rival mobile software supplier Good Technology for $ 425 million, to increase its means to assist company shoppers handle smartphones operating on totally different working techniques. 

The money deal might assist BlackBerry, a one-time smartphone pioneer, win new clients for its providers enterprise, a precedence because it shifts focus to device administration software for enterprise clients. Greater than half the units operating on Good’s methods are Apple merchandise such because the iPhone. 

BlackBerry stated it expects to understand about $ one hundred sixty million in income from the acquisition within the first yr after the deal closes, anticipated by late November. Its Toronto listed shares have been up 1.1% at C$ 7.97 in early buying and selling. 

On a name with analysts and buyers, BlackBerry chief government John Chen was requested about Good’s money burn. He promised that BlackBerry would stay money circulate constructive general

“There clearly can be exhausting work concerned,” he stated. “However I do see loads of alternative right here to drive worth for our shareholders.” 

Chen stated BlackBerry will keep each firm’s merchandise because it develops a unified platform that clients can upgrade to. He stated that a unified product might take a yr or two. 

Relations between BlackBerry and Silicon Valley-based mostly Good had lengthy been tense. The businesses settled a collection of patent lawsuits in 2004, however as just lately as January 2015, BlackBerry critiqued one in every of Good’s product bulletins in a weblog submit, annotating the rival firm’s press launch in pink ink. 

“There’s a very lengthy historical past right here. We’re in an extremely aggressive market and converse to most of the similar clients,” stated Good chief government Christy Wyatt in an interview posted on BlackBerry’s information website. 

Wyatt stated her firm’s know-how would increase BlackBerry’s potential to handle ‘Web of issues’ units, supporting wearable know-how such because the Apple Watch and Android-based mostly rivals. 

BlackBerry has lately made acquisitions to increase its providers enterprise, and in July Chen stated the corporate would possible make extra. On Friday, he in contrast the acquisition of Good with beforehand introduced offers for Secusmart, Movirtu and WatchDox. 

JP Morgan Securities LLC and Financial institution of America Merrill Lynch suggested Good on the deal, BlackBerry stated.
ToI

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