In a statement, Arctic Wolf said that, under the terms of the agreement, it will give BlackBerry a total of US$160 million in cash, subject to certain adjustments, and approximately 5.5 million Arctic Wolf common shares. After allowing for the purchase price adjustment, BlackBerry will receive approximately US$80 million upon closing of the deal, which is expected in late February, and approximately $40 million one year later.
It’s a win-win, says BlackBerry
“Security has a problem with efficiency and effectiveness and solutions alone have failed to deliver the results they have promised for years,” Arctic Wolf CEO Nick Schneider said in a statement. “By integrating Cylance’s security capabilities into our open XDR Aurora platform, we will be addressing the pressing need for truly integrated, efficient security operations that deliver better results for customers. We believe we will be able to quickly eliminate security fatigue, reduce risk exposure, and help customers unlock additional value through our warranty and security programs.”
BlackBerry CEO John Giamatteo said he sees the deal as “great value for our shareholders and all other stakeholders.” Our customers will see the benefits of continued service and expertise provided by a global cybersecurity leader like Arctic Wolf. Arctic Wolf benefits from adding Cylance security solutions to its native environment. Ultimately, as Arctic Wolf increases its scope to build on and grow the Cylance business, BlackBerry will benefit as a portfolio vendor to our major government customers and as a shareholder of the company.”
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