BlackBerry to buy security company Good Tech for $425M
The acquisition is a software-focused bid for the smartphone company.
Blackberry CEO John Chen appeared on the 'Mornings with Maria Bartiromo' program, on the Fox Business Network, in New York, July 23, 2015.
Richard Drew/AP Photo/File
New York
BlackBerry said Friday that it will make another security-related acquisition, buying Good Technology for $425 million in cash.
BlackBerry, once known for making smartphones, is now trying to focus on software that lets IT departments manage mobile devices. The company said Good Technology will help it offer a unified secure platform for mobile devices that runs on any operating system. It said Good Technology has about $160 million in annual revenue, while BlackBerry has reported about $3 billion in revenue in its last four fiscal quarters.
The Canadian company expects to complete the purchase by the end of November.
Earlier this year BlackBerry Ltd. bought WatchDox, a provider of secure enterprise file-sync-and-share technology, and agreed to buy AtHoc, a software company that develops emergency alert systems for government agencies, military bodies, and other organizations.
The company also announced a round of job cuts earlier this year as it restructures its business and deals with weak smartphone sales. BlackBerry has eliminated thousands of jobs in the last few years under CEO John Chen, who and has focused on reducing costs and increasing innovation.
U.S. shares of BlackBerry rose 10 cents to $7.56 in midday trading Friday. The stock has fallen 28 percent over the past year.