- BlackBerry just confirmed that it plans to buy Cylance, an artificial-intelligence and cybersecurity company, for $1.4 billion in cash.
- Cylance will operate as a separate business within BlackBerry.
- Business Insider first reported the acquisition talks in early November.
The Canadian software maker BlackBerry said on Friday that it would acquire Cylance, an artificial-intelligence and cybersecurity company, for $1.4 billion in cash. Business Insider first reported the acquisition talks in early November.
Besides the cash component, the deal includes the assumption of Cylance’s unvested employee incentives, BlackBerry said.
Cylance will operate as a separate business unit within BlackBerry, the company said.
Cylance, based in Irvine, California, develops AI-based products to protect companies from cyberattacks. It has raised $327 million in venture-capital funding, according to PitchBook, and was recently considering filing for an initial public offering, several sources told Business Insider.
The six-year-old startup competes with CrowdStrike – which is planning an IPO valuing the company at more than $3 billion, according to a recent Reuters report – in the fast-growing market for cybersecurity services.
BlackBerry has been expanding its security offerings, as it has shifted from selling mobile-phone hardware to providing enterprise software and services to business customers.
Cylance brought in more than $130 million in revenue for fiscal 2018, representing 90% year-over-year growth, a press release from June said. Cylance also has 4,000 customers, according to the release.
(Reporting by Bhargav Acharya in Bengaluru and Becky Peterson in San Francisco)