BlackBerry sells cybersecurity business, Cylance, it acquired $1.4bn for $160m

BlackBerry’s beleaguered cybersecurity business, Cyclance, has been acquired by Arctic Wolf for $160 million.

The smartphone technology company acquired the startup for $1.4 billion in 20218.

Under the terms of the deal, which is expected to close in BlackBerry’s fiscal Q4, BlackBerry will sell its Cylance assets to Arctic Wolf for $160 million in cash. BlackBerry will get ~$80 million at closing and the rest of the tranche a year later, along with roughly 5.5 million common shares in Arctic Wolf.

“We see this transaction as a win-win for our shareholders and all other stakeholders,” BlackBerry CEO John Giammatteo said in a statement. “Our customers will realize the benefits of continuity of service and the expertise that a global cybersecurity leader like Arctic Wolf provides.

“Arctic Wolf benefits by adding Cylance’s endpoint security solutions to its native platform. Finally, as Arctic Wolf leverages its scale to build upon and grow the Cylance business, BlackBerry will benefit as a reseller of the portfolio to our large government customers and as a shareholder of the company.”