BlackBerry to Acquire Cylance
WATERLOO, ONT and IRVINE, CA. – BlackBerry Limited will wholly acquire Cylance, an artificial intelligence and cybersecurity leader, for $1.4 Billion USD in cash, plus the assumption of unvested employee incentive awards. The deal is expected to close by February 2019, at which time Cylance will operate as a separate business unit within BlackBerry Limited.
“Cylance’s leadership in artificial intelligence and cybersecurity will immediately complement our entire portfolio, UEM and QNX in particular. We are very excited to onboard their team and leverage our newly combined expertise,” said John Chen, Executive Chairman and Chief Executive Officer of BlackBerry in a company press release. “We believe adding Cylance’s capabilities to our trusted advantages in privacy, secure mobility, and embedded systems will make BlackBerry Spark indispensable to realizing the Enterprise of Things.”
Cylance is a pioneer in applying artificial intelligence, algorithmic science, and machine learning to cybersecurity software that has proven highly effective at predicting and preventing known and unknown threats to fixed endpoints. Cylance has become a market leader with an advanced and lightweight agent that resides on the endpoint, operates both online and off, and requires a minimum of memory and power to function. Founded in 2012, Cylance generates highly recurring revenue from over 3,500 active enterprise customers, including over 20% of the Fortune 500.
“Our highly skilled cybersecurity workforce and market leadership in next-generation endpoint solutions will be a perfect 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 Chief Executive Officer of Cylance. “We are eager to leverage BlackBerry’s mobility and security. BlackBerry Spark is a next-generation secure chip-to-edge communications platform for the EoT that will create and leverage trusted connections between any endpoint.”
Designed for ultra-security and industry-specific safety-certifications, such as ISO 26262 in automobiles, BlackBerry Spark will leverage the company’s deep portfolio of technology, including FIPS-validated, app-level, AES 256-bit encryption to ensure data is always protected. BlackBerry Spark enables organizations to comply with stringent multi-national regulatory requirements. BlackBerry is the only EoT platform provider to achieve Common Criteria EAL4+ for both iOS and Android, offering the highest level of security in the market.
Perella Weinberg Partners LP acted as exclusive financial advisor and Morrison Foerster LLP acted as legal advisor to BlackBerry. Morgan Stanley and Jones Day advised Cylance on the transaction.
About BlackBerry: BlackBerry Limited enables the Enterprise of Things by providing the technology that allows endpoints to trust one another, communicate securely, and maintain privacy. Based in Waterloo, Ontario, the company was founded in 1984 and operates globally.
About Cylance: Cylance develops artificial intelligence to deliver prevention-first, predictive security products and smart, simple, secure solutions that change how organizations approach endpoint security. Cylance provides full spectrum predictive threat prevention and visibility across the enterprise to combat the most notorious and advanced cybersecurity attacks. With AI-based malware prevention, threat hunting, automated detection and response, and expert security services, Cylance protects the endpoint without increasing staff workload or costs.