Arctic Wolf to acquire BlackBerry’s Cylance assets for $160M

Arctic Wolf and BlackBerry (BB) have entered into a definitive agreement for Arctic Wolf to acquire BlackBerry’s Cylance endpoint security assets. Cylance is the pioneer of AI-based endpoint protection trusted by thousands of organizations around the world. With this acquisition, Arctic Wolf ushers in a new era of simplicity, flexibility, and outcomes to the endpoint security market, delivering the security operations results customers have been asking for. Under the terms of the agreement, BlackBerry will sell its Cylance assets to Arctic Wolf for $160 million of cash, subject to certain adjustments, and approximately 5.5 million common shares of Arctic Wolf. After allowing for the purchase price adjustments, BlackBerry will receive approximately $80 million of cash at closing and approximately $40 million of cash one year following the closing. The proposed transaction is subject to customary closing conditions and is expected to close in BlackBerry’s fourth fiscal quarter. With the addition of Cylance’s trailblazing suite of endpoint security capabilities and enhanced AI functionality, Arctic Wolf will bolster its position as a market-leading platform provider, offering coverage from the endpoint to the edge. As many organizations are looking to consolidate an increasing number of disparate security tools, there is a rapidly growing demand for end-to-end platforms. There will be no impact to BlackBerry’s Secure Communications portfolio of businesses, which include BlackBerry UEM, BlackBerry AtHoc and BlackBerry SecuSUITE. The Secure Communications business will remain an integral part of the BlackBerry portfolio.