BlackBerry Limited (NASDAQ:BBRY) (TSX:BB) announced today that it has a definitive agreement to acquire Good Technology for $425 million in cash.
By acquiring Good, BlackBerry will better solve one of the biggest struggles for CIOs today, especially those in regulated industries: securely managing devices across any platform. By providing even stronger cross-platform capabilities our customers will not have to compromise on their choice of operating systems, deployment models or any level of privacy and security,”
– John Chen, BlackBerry Executive Chairman and CEO.
Based in Sunnyvale, California, Good Technology was viewed as a competitor for BlackBerry as part of their solutions is a comprehensive secure mobility solution. The company was established in 1996.
The takeover of Good Technology is keeping in with BlackBerry’s strategy to give users the most comprehensive, end-to-end solution that provides security to users across all the platforms.
This seems like a natural acquisition for BlackBerry Ltd (NASDAQ:BBRY) to strengthen its ability to provide secure end-to-end solution for the whole enterprise.
The organization expects the acquisition to have accretive impact to earnings as well as cash flow within the very first year post closing. BlackBerry also anticipates to obtain around $160 million in GAAP earnings from Good in the very first year, which includes the effect of an anticipated reduction of particular deferred Good’s revenue.
Bolstered by Good, BlackBerry will broaden its capacity to provide a consolidated, secure mobiles platform with apps for any mobile gadget on any operating system. Also BlackBerry is supported with security that has been approved by governments globally, embedded in each element of the mobile infrastructure.
Good Technology will supply complementary abilities as well as technologies to Blackberry which include secure apps and containerization which safeguards user privacy.
Together with Good Technology, the smartphone maker will increase its capability to provide cross-platform EMM offerings that are crucial in an environment with constantly changing deployment models. The latter include corporate owned, personally enabled (COPE), bring-your-own-device (BYOD), along with environments having multiple user interfaces as well as operating systems.
Good’s technology will merge with the smartphone’s business portfolio as well as trusted worldwide network. This would create a complete management product for all mobile gadgets that safeguards users’ privacy as well as security. This comprehensive experience will provide customers with superior mobile enterprise productivity. The latter includes smooth integration of capabilities across several applications, which include Secusmart, Good Work, BBM, WatchDox, and other value added services.
BlackBerry Ltd (NASDAQ:BBRY) expects the transaction to be finished toward the close of the organization’s fiscal third quarter of next year and is subject to customary closing conditions and regulatory approvals.