Waterloo, December 17, 2024 – BlackBerry Ltd. has finalized an agreement to sell its Cylance Inc. security business to Arctic Wolf for a total of $160 million, marking a significant shift in the company’s cybersecurity strategy.
Cylance, known for its use of artificial intelligence to detect malware and prevent cyberattacks, was acquired by BlackBerry in February 2019 for $1.4 billion. The sale to Arctic Wolf, a privately held security software and services company, reflects BlackBerry’s ongoing transformation and focus on its core business areas.
Under the terms of the deal, Arctic Wolf will pay $160 million in cash, subject to certain adjustments, along with approximately 5.5 million common shares of the company. Following the adjustments, BlackBerry is expected to receive about $80 million in cash at the closing and an additional $40 million one year later.
The transaction is subject to customary closing conditions and is anticipated to close in BlackBerry’s fourth quarter. This sale is part of BlackBerry’s strategy to streamline operations and concentrate on its software and services that drive growth.
The divestiture of Cylance signifies BlackBerry’s shift away from hardware and towards software solutions, as it aims to enhance its offerings in the cybersecurity space amid increasing global threats.
The sale of Cylance to Arctic Wolf not only enables BlackBerry to secure immediate cash flow but also positions Arctic Wolf to expand its capabilities in AI-driven cybersecurity solutions, furthering innovation in the sector.
