Categories Technology, U.S. Markets News

BlackBerry’s cybersecurity push to get a fillip from Cylance buyout

BlackBerry (BB) is currently going through a crucial phase of its transition from a device-maker to a software services provider, and the latest quarterly results indicate the efforts are paying off. However, shareholders are yet to perceive the effect of the ongoing recovery, with the stock struggling to come out of its multi-year lows.

Now, the management seems to be doing its bit to increase shareholder value, by ramping up the product portfolio. After a long gap, the once-thriving smartphone maker is bringing yet another technology firm into its fold.

As part of strengthening its software and services business, which accounted for about three-fourths of the revenues in the last quarter, BlackBerry has agreed to acquire cybersecurity firm Cylance for $1.4 billion in cash. The deal, which comes after several weeks of closely-watched negotiations, is expected to close early next year.

As part of strengthening its software and services business, BlackBerry agreed to acquire cybersecurity firm Cylance for $1.4 billion

Cylance, which provides endpoint security products based on artificial intelligence and machine learning, will be integrated into Blackberry’s QNX division that develops software for self-driving vehicles. According to industry sources, Cylance has been considering an IPO for some time. After integration, it is expected to operate as a separate entity.

By enhancing its autonomous vehicle offerings, BlackBerry is looking to add momentum to the turnaround, bringing cheer to the investors who have been waiting patiently for many years.  While it is too optimistic to expect a full-fledged rebound in the near future, long-term investors who have held the stock for long can look for returns. Considering Blackberry’s cash stockpile, one can anticipate more strategic deals in the coming months.

BlackBerry recovery gains steam; Q2 earnings beat estimates

Blackberry, which generates the lion’s share of its revenue by selling software licenses to other smartphone makers, is scheduled to report its third-quarter results on December 28 before the market opens. Analysts’ average rating on the company in the past 30 days has been hold. Among the other recommendations, five analysts maintained their buy rating on the stock.

BlackBerry shares have remained in the red so far this year, underperforming the sector. The stock, which lost about 14% over the past twelve months, closed the last trading session slightly higher.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event

Most Popular

CL Earnings: Key quarterly highlights from Colgate-Palmolive Company’s Q4 2022 financial results

Colgate-Palmolive Company (NYSE: CL) reported fourth quarter 2022 earnings results today. Net sales increased 5% year-over-year to $4.62 billion. Organic sales growth was 8.5%. Net income attributable to Colgate-Palmolive Company was

Key highlights from Chevron Corporation’s (CVX) Q4 2022 earnings results

Chevron Corporation (NYSE: CVX) reported fourth quarter 2022 earnings results today. Total revenues and other income were $56.4 billion compared to $48.1 billion in the year-ago period. Net income attributable

AXP Earnings: All you need to know about American Express’ Q4 2022 earnings results

American Express Company (NYSE: AXP) reported fourth quarter 2022 earnings results. Consolidated total revenues net of interest expense were $14.2 billion, up 17% from a year ago. Net income was

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top