BlackBerry to acquire cyber-security firm Cylance for USD 1.4 Billion
Published Date | 2018 November 21
BlackBerry will acquire Cylance, an artificial intelligence, and cyber security company, for USD 1.4 billion in cash. The acquisitions will help expand BlackBerry's QNX unit, which makes software for next-generation autonomous cars.Global: BlackBerry Limited has entered into a definitive agreement to acquire artificial intelligence and cyber-security firm Cylance for USD 1.4 billion, plus the assumption of unvested employee incentive awards. Pending regulatory approvals and other customary closing conditions, the deal is expected to close prior to the end of BlackBerry's current fiscal year. Stuart McClure, Co-Founder, Chairman, and CEO of Cylance, said in a statement, “Our highly skilled cyber security 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. We are eager to leverage BlackBerry’s mobility and security strengths to adapt our advanced AI technology to deliver a single platform.” According to BlueWeave Consulting, the deal is seen as helping the Canadian technology company carry out its transition from making smartphones to selling software and doubling down on emerging businesses such as self-driving vehicles. Acquiring Irvine, California-based Cylance will specifically work to build upon Blackberry's QNX unit, aimed at creating software for next-gen autonomous vehicles. Blackberry, once the world's number one mobile brand, ceased manufacturing its keyboard-centric phones in-house, marking its larger shift to launching cyber security products such as enterprise platform security software and Internet of Things (IoT) device security. Cylance develops AI-driven cyber security products that prevent cyber-attacks on companies. The firm, which recently considered filing for an initial public offering, lists roughly 3,500 enterprise clients including 100 Fortune 500 companies and government agencies that use its endpoint protection and antivirus solutions. Blackberry plans to integrate Cylance technology within its Spark platform in the future. As a result of the deal, which was paid in cash up front, Cylance will remain a separate business unit within Blackberry. The acquisition marks Blackberry's largest ever and is slated to close before February 2019, the end of the company's current fiscal year. According to the recently published report by BlueWeave Consulting on “Cyber Security Insurances Market [Service Type– Risk Management, Integrity, Forefront Portfolio, Third Party Liability And Others; Enterprise Size – Small & Medium Enterprises (SMEs), Large Enterprises; Industry Vertical – Banking and Financial Services, Telecom and IT, Government, Healthcare, Education, Manufacturing, Travel and Hospitality and Others– Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018 – 2026, the global cyber security insurance market was valued at US$ 3,329.0 Mn in 2016 and is expected to expand at a CAGR of 25.3% from 2018 to 2026, reaching US$ 32,543.6 Mn by the end of the forecast period. According to the report, North America was the largest contributor in terms of revenue to the cyber security insurance market in 2016. Cyber insurance helps protect businesses against losses resulting from cyber-attacks or data breaches. Cyber insurance coverage can include data loss and restoration, extortion, legal fees, and more. Cyber security insurance increases and improves cyber security with the benefits of good security, and internalizing of the costs of poor security. There are many benefits that coincide with investing in insurance.