BlackBerry to acquire Cylance for $1.4 billion

BlackBerry today said that it has entered into definitive agreement to wholly acquire Cylance, an artificial intelligence and cybersecurity leader, for $1.4 billion in cash.

The deal is expected to close prior to the end of BlackBerry's current fiscal year (February 2019).

"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 CEO of BlackBerry.

"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 into applying artificial intelligence, algorithmic science, and machine learning to cyber security software that has proven highly effective in predicting and preventing known and unknown threats to fixed endpoints.

The fast-growing company 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 more than 20 percent 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 CEO of Cylance.

McClure said, "We are eager to leverage BlackBerry's mobility and security strengths to adapt our advanced AI technology to deliver a single platform."