BlackBerry to buy cybersecurity firm Cylance for $1.4 bln

Donna Miller
November 16, 2018

BlackBerry Ltd raised its bets on artificial intelligence and cybersecurity on Friday with the US$1.4 billion purchase of California-based machine-learning specialists Cylance.

Cylance is a company in the cybersecurity and artificial intelligence business, having 3,500 active customers which they claim include more than 20% of the Fortune 500. "We are very excited to onboard their team and leverage our newly combined expertise", said John Chen, BlackBerry CEO. In their press release, Blackberry talks about Spark, their platform that operates in the EoT (Enterprise of Things) market; such as automobiles where reliability and security are the most important features of a platform.

"First, it will provide BlackBerry with additional cybersecurity capabilities with state-of-the-art artificial intelligence and machine learning technology, that could be utilized across our entire portfolio.Secondly, it's the key investment to our future software and services growth in the enterprise market".

McClure, Cylance's chief executive and chairman, said he feels BlackBerry and his company complement each other and share a vision of securing and connecting every endpoint - a technology term used to describe the connections to the internet - in the world.

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"Our highly skilled cybersecurity workforce and market leadership in next-generation endpoint solutions will be a flawless fit within BlackBerry where our customers, teams and technologies will gain immediate benefits from BlackBerry's global reach", said Stuart McClure, Co-Founder, Chairman, and CEO of Cylance.

Blackberry is estimated to pay $1.4 billion for Cylance, which is more than a year of Blackberry's current revenue.

"Our highly skilled cybersecurity workforce and market leadership in next-generation endpoint solutions will be a ideal fit within BlackBerry, where our customers, teams and technologies will gain immediate benefits from BlackBerry's global reach", said Stuart McClure, co-founder, chairman, and CEO of Cylance. Cylance was advised on the transaction by Morgan Stanley and Jones Day.

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