Security operations firm Arctic Wolf announced on Monday that it has acquired Cylance endpoint security technology from BlackBerry.
BlackBerry has agreed to sell Cylance assets to Arctic Wolf for $160 million of cash and roughly 5.5 million Arctic Wolf common shares.
BlackBerry will receive approximately $80 million in cash at closing and roughly $40 million one year later. The deal is expected to close in the fourth fiscal quarter.
BlackBerry acquired Cylance for $1.4 billion in cash in 2018, and six years later it’s selling it for a fraction of the amount.
Arctic Wolf has developed a platform that provides managed detection and response, risk management, managed security awareness, and incident response capabilities.
The company plans on using Cylance’s endpoint security capabilities and AI functionality to enhance its capabilities, offering an end-to-end platform that provides coverage from the endpoint to the edge.
“By incorporating Cylance’s endpoint security capabilities into our open-XDR Aurora platform, we will be addressing a rampant need for a truly unified, effective security operations that delivers better outcomes for customers,” said Nick Schneider, president and CEO of Arctic Wolf.
“We believe we will be able to rapidly eliminate alert fatigue, reduce total risk exposure, and help customers unlock further value with our warranty and insurability programs,” Schneider added.
BlackBerry pointed out that its sale of Cylance to Arctic Wolf will not have an impact on its Secure Communications offering (BlackBerry UEM, AtHoc and SecuSUITE), which will remain an integral part of its portfolio.
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