Blackberry shares are higher Friday, as the tech business buys AI cybersecurity business, Cylance, for $1.4 billion. The purchase sees the Canadian former smartphone developer move further into the cybersecurity sector, at a time when data protection and fending off online attacks is at the forefront of tech users’ minds.
By 1500 BST, Blackberry shares were 2.26% higher at $9.05. The stock has been trading mainly lower in recent weeks.
Blackberry’s Cylance purchase
Earlier Friday, Blackberry announced its plan to purchase AI cybersecurity specialist, Cylance. The deal should be a good fit for the Canadian software firm, which has for the past ten years or so, grown its software expertise and developed its Internet of Things division.
“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,” Chen added.
Cylance was founded in 2012 and has developed cybersecurity software that is capable of detecting and pre-empting potential cyber-attacks, through the use of machine learning and AI.
The company has over 3,500 enterprise companies and recent reports suggest Cylance had been considering a stock market float. However, this deal means that’s no longer necessary for it to realise its financial worth.
“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.
“We are eager to leverage BlackBerry’s mobility and security strengths to adapt our advanced AI technology to deliver a single platform,” McClure added.