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The sale comes six years after BlackBerry purchased Cylance for $1.4bn in cash.
Canadian smartphone player BlackBerry has agreed to sell its AI security asset Cylance to cybersecurity play Arctic Wolf for $160m.
In a blogpost, Arctic Wolf’s chief product and services officer Dan Schiappa said the acquisition will allow the company to introduce a “unique approach” to endpoint security.
“This innovation is designed to make a meaningful difference in how organisations combat cyber risk, elevating both protection and operational efficiency,” he said.
The deal between the two companies comes six years after BlackBerry first acquired Cylance for $1.4bn in cash. At the time it was the biggest acquisition the company had ever made.
Now, having sold it for much less than it purchased it for, BlackBerry’s chief executive officer, John Giamatteo, said the deal is a “win-win” for both shareholders and other stakeholders.
“Our customers will realise the benefits of continuity of service and the expertise that a global cybersecurity leader like Arctic Wolf provides,” he said.
“Arctic Wolf benefits by adding Cylance’s endpoint security solutions to its native platform. Finally, as Arctic Wolf leverages its scale to build upon and grow the Cylance business, BlackBerry will benefit as a reseller of the portfolio to our large government customers and as a shareholder of the company.”
The deal is expected to close in BlackBerry’s fourth fiscal quarter, in the first half of 2025, subject to closing conditions. As well as $160m in cash, BlackBerry will also receive 5.5m common shares of Arctic Wolf.
There will be no impact to its secure communications portfolio of businesses and Cylance customers will continue to be fully supported, with Schiappa adding that endpoint security is a key priority for Arctic Wolf.
“Arctic Wolf is uniquely equipped to provide the resources, innovation and expertise needed to take Cylance’s endpoint products to the next level,” he said.
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