- Big news from two global names in security software and services, Arctic Wolf will acquire BlackBerry’s (TSX:BB) Cylance endpoint security assets
- This acquisition marks a new era of simplicity, flexibility, and outcomes in the endpoint security market, delivering the security operations results customers have been seeking
- Under the terms of the agreement, BlackBerry will sell its Cylance assets to Arctic Wolf for $160 million in cash, subject to certain adjustments, and approximately 5.5 million common shares of Arctic Wolf
- BlackBerry stock (TSX:BB) last traded at C$4.33
Big news from two global names in security software and services, Arctic Wolf will acquire BlackBerry’s (TSX:BB) Cylance endpoint security assets.
Under the terms of the agreement, BlackBerry will sell its Cylance assets to Arctic Wolf for $160 million in cash, subject to certain adjustments, and approximately 5.5 million common shares of Arctic Wolf. After accounting for purchase price adjustments, BlackBerry will receive approximately $80 million in cash at closing and an additional $40 million one year following the closing. The transaction is subject to customary closing conditions and is expected to close in BlackBerry’s fourth fiscal quarter.
“Security has an operations and effectiveness problem, and endpoint solutions alone have failed to live up to their promises for years,” Nick Schneider, president and CEO of Arctic Wolf, stated in a news release. “By incorporating Cylance’s endpoint security capabilities into our open-XDR Aurora platform, we will address the need for a truly unified, effective security operation that delivers better outcomes for customers. We believe we can rapidly eliminate alert fatigue, reduce total risk exposure, and help customers unlock further value with our warranty and insurability programs.”
“Our customers will benefit from the 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,” BlackBerry’s CEO, John Giamatteo added. “As Arctic Wolf leverages its scale to 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.”
BlackBerry’s secure communications portfolio, including BlackBerry UEM, BlackBerry AtHoc, and BlackBerry SecuSUITE, will remain an integral part of the company’s offerings.
With the addition of a native endpoint security solution to its portfolio, Arctic Wolf is building one of the largest open XDR security platforms in the industry. This platform enables customers and partners to leverage more than 15 supported endpoint solutions. Arctic Wolf’s comprehensive approach to minimizing risk through security operations uniquely positions it to drive value for customers of all sizes and security maturity levels.
Cylance has a long history of recognition as a market leader, known for stopping 98 per cent of attacks before they begin and trusted by many of the world’s leading organizations for its AI-driven prevention and detection. Recently, Cylance was named the 2024 customers’ choice for endpoint protection platforms by Gartner Peer Insights for the second consecutive year. By integrating Cylance into its portfolio, Arctic Wolf will provide a world-class endpoint protection solution that rivals the best in the industry, complementing its endpoint offering with one of the largest commercial SOCs in the world that delivers unified security operations and comprehensive attack surface coverage.
A top player in AI-powered security operations, Arctic Wolf delivers solutions from a single open platform to meet customers’ needs for reliable security outcomes. The addition of Cylance’s ]endpoint security capabilities and enhanced AI functionality can help Arctic Wolf strengthen its position as a market-leading platform provider, offering coverage from the endpoint to the edge. The Arctic Wolf Aurora platform ingests and analyzes more than seven trillion security events a week.
BlackBerry provides intelligent security software and services to enterprises and governments around the world. The company secures more than 500 million endpoints including more than 235 million vehicles.
BlackBerry stock (TSX:BB) last traded at C$4.33 and has risen 32.23 per cent over the past three months.
Join the discussion: Find out what everybody’s saying about BlackBerry stock on the BlackBerry Bullboard and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top photo via BlackBerry.)