In a major cybersecurity industry move, Arctic Wolf has agreed to acquire BlackBerry's Cylance endpoint security business in a deal valued at $160 million plus company shares.
The acquisition agreement includes $160 million in cash payments and approximately 5.5 million Arctic Wolf common shares. BlackBerry will receive $80 million when the deal closes, with an additional $40 million payment scheduled for one year later.
The deal combines Cylance's artificial intelligence-powered endpoint protection technology with Arctic Wolf's Security Operations Aurora Platform. Thousands of organizations worldwide currently rely on Cylance's AI-based security solutions.
"Security has an operations and effectiveness problem and endpoint solutions alone have failed to live up to the outcomes they have promised for years," said Arctic Wolf CEO Nick Schneider, explaining the strategic rationale behind the acquisition.
BlackBerry CEO John Giamatteo expressed optimism about the agreement, noting that customers will benefit from service continuity and Arctic Wolf's cybersecurity expertise. BlackBerry will maintain its relationship with Cylance as a reseller to government clients while also becoming a shareholder in Arctic Wolf.
The transaction will not affect BlackBerry's other security offerings, including its Secure Communications portfolio of UEM, AtHoc, and SecuSUITE products. The deal is expected to close during BlackBerry's fourth fiscal quarter.
The announcement drove BlackBerry's stock price up by 16.5% to $3.13 per share, reflecting positive market reaction to the company's strategic move in the cybersecurity sector.
This acquisition positions Arctic Wolf to strengthen its market presence by integrating Cylance's established endpoint security capabilities into its existing security operations platform.