BlackBerry to Buy Cyber-Security Firm Cylance for $1.4 Billion
BlackBerry raised its bets on artificial intelligence and cyber-security on Friday with the $1.4 billion (roughly Rs. 10,063 crores) purchase of California-based machine-learning specialists Cylance. The Canadian technology company, which dominated the smartphone market a decade ago, has shifted to selling software to manage mobile devices, as well as emerging areas like autonomous cars. Privately owned Cylance uses machine learning to preempt security breaches before they occur. Its applications seek to block malware or infiltration attempts rather than react after a breach.
Cylance, having over 3,500 active enterprise customers, had been considering filing for a stock market floatation.
Cylance’s leadership in artificial intelligence and cyber-security will immediately complement the entire portfolio of Blackberry
The California-based company’s Chief Executive Stuart McClure committed its ability to leverage Blackberry’s strength in mobile communications and security to adapt its AI technology.
Besides the $1.4 billion that this company will pay, the deal also includes the assumption of Cylance’s unvested employee incentives.
Cylance will continue to operate as a separate business unit after the deal closes, BlackBerry said. The deal will close by Feb 2019.
US-listed shares of Blackberry were marginally up in light pre-market trading.