BlackBerry signed a definitive agreement to acquire Good Technology, a secure mobility solutions company, for $425 million in cash.
More than 6, 200 organizations including those in the Fortune 100 in over 190 countries around the world are using the solutions of Good Technology.
The stock price of BlackBerry increased 1.46% to $7.57 per share at the time of this writing around 12:10 in the afternoon in New York.
Bringing complementary technologies to BlackBerry
According to BlackBerry, the transaction aligns with its strategy to provide customers with the most complete, end-to-end solution that secure the entire mobile enterprise across all platforms.
BlackBerry will be able to expand its capability to offer unified and secure mobility platforms with applications for any mobile device or operating system—supported with government-certified security solutions.
The deal will also allow the Canadian technology company to boost its ability to cross-platform EMM solutions critical in various deployment models such as bring-your-own-device (BYOD); corporate owned, personally enabled (COPE) and multiple-user interface environments.
Good Technology is an expert in multi-OS management with 64% activations from iOS devices followed by Android and Windows OS. The company’s platform provides a proven app-level encryption, advanced data loss prevention and secure communications between applications.
Good Technology’s expertise combined with BlackBerry’s strength in BlackBerry 10, Android management, and Samsung’s Knox-enabled devices; consumers will have more choices to deploy any operating system securely in their organization.
Solving one of the biggest struggles for CIOs
In a statement, BlackBerry Executive Chairman and CEO John Chen said the acquisition allows BlackBerry to “better solve one of the biggest struggles for CIOs,” which is managing devices across any platform securely particularly in regulated industries.
Chen said, “By providing even stronger cross-platform capabilities, our customers will not have to compromise on their choice of operating systems, deployment models or any level of privacy and security.”
Additionally, Chen emphasized that Good Technology has a strong presence in enterprises and governments globally. He is confident that the acquisition will help BlackBerry improve its sales and distribution capabilities and expand its enterprise revenue stream.
BlackBerry expects to achieve approximately $160 million in GAAP revenue from Good Technology in the first year after the completion of the deal.
The transaction is subject to customary closing conditions and regulatory approvals. BlackBerry expects to complete the acquisition by the end of its 2016 fiscal third quarter.