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BlackBerry to Buy Cyber Security Firm Cylance for $1.4 Billion

BlackBerry to Buy Cyber-Security Firm Cylance for $1.4 Billion

By Reuters | Updated: 16 November 2018 18:36 IST

BlackBerry said the deal also includes the assumption of Cylance's unvested employee incentives

Highlights

Cylance's AI and cyber-security will complement BlackBerry's portfolio
The California-based company has over 3,500 active enterprise customers
It will operate as a separate entity after the deal closes

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, which has over 3,500 active enterprise customers, had been considering filing for a stock market floatation, according to a report in Business Insider.

"Cylance's leadership in artificial intelligence and cyber-security will immediately complement our entire portfolio," BlackBerry CEO John Chen said in a statement.

The California-based company's Chief Executive Stuart McClure, in turn, said it would be able to leverage Blackberry's strength in mobile communications and security to adapt its AI technology.

Besides the $1.4 billion that BlackBerry will pay, the deal also includes the assumption of Cylance's unvested employee incentives, BlackBerry said.

Cylance will continue to operate as a separate business unit after the deal closes, BlackBerry said. The deal is expected to close by Feb 2019.

US-listed shares of Blackberry were marginally up in light pre-market trading.

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