Canada’s BlackBerry Ltd said it
will buy rival mobile software provider Good Technology Corp for $425 Million
to boost its ability to help corporate clients manage smartphones running on
different operating systems. The cash deal may help BlackBerry a one-time
smartphone pioneer win new customers for its service business.
BlackBerry shifts focus to device
management software for enterprise customers. More than half the devices
running on Good’s systems are Apple Inc. products such as the iPhone. Company expects
to realize about $160 Million in revenue from the acquisition in the first year
after the deal closes.
BlackBerry has recently made
acquisitions to expand its services business. Earlier they had announced deals
for Secusmart, Movirtu, and WatchDox. BlackBerry has always been about
delivering secure mobile solutions. It’s easy to forget now that BlackBerry was
once the undisputed leader in enterprise mobility, but when Apple and Android
came along, BlackBerry quickly lost its dominant position.
Overall, this looks like it could
be a good deal for both companies, giving Good Technologies a soft landing
without having to risk the dangers of IPOing in an increasingly hostile market,
while filling out BlackBerry growing security platform without putting out a
huge amount of cash.
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