Cybersecurity and IoT solutions provider BlackBerry (NYSE:BB) has agreed to sell nearly all of its non-core patents and patent applications to Malikie Innovations for a total consideration of about $900 million.
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Malikie is a subsidiary of the intellectual property (IP) monetization company Key Patent Innovations. The move is expected to strengthen BB’s balance sheet as the company focuses on IoT and cybersecurity.
The $900 million consideration includes $170 million in cash upon closing, $30 million by the third anniversary of the closing, and the rest in tiered royalties. Significantly, the transaction involves about 32,000 patents and applications.
Earlier, BB had entered into a patent sale transaction with Catapult IP but terminated the agreement after Catapult failed to secure the necessary funding.
Overall, the Street has a $4.67 consensus price target on BB implying a 24% potential upside in the stock. That’s on top of a nearly 13% gain in the share price so far this year.
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