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Arctic Wolf hasacquiredCylance , BlackBerry ’s beleaguered cybersecurity business , for $ 160 million — a significant deduction from the $ 1.4 billion BlackBerrypaidto acquire the startup in 2018 .
Under the terms of the mountain , which is expected to fold in BlackBerry ’s fiscal Q4 , BlackBerry will sell its Cylance assets to Arctic Wolf for $ 160 million in cash . BlackBerry will get ~$80 million at closing and the rest of the tranche a year later , along with about 5.5 million common shares in Arctic Wolf .
“ We see this transaction as a win - profits for our shareholder and all other stakeholders , ” BlackBerry CEO John Giammatteo say in a affirmation . “ Our client will recognise the benefit of continuity of table service and the expertise that a planetary cybersecurity loss leader like Arctic Wolf provides . Arctic Wolf benefits by adding Cylance ’s endpoint protection solution to its aboriginal platform . at long last , as Arctic Wolf leverages its scale to progress upon and maturate the Cylance job , BlackBerry will profit as a reseller of the portfolio to our large government customers and as a shareholder of the troupe . ”
Close to eight years ago , BlackBerry , once hump for its keyboard - sporting smartphones , was cant over the Cylance buy as a major component of its pivot man toward enterprise service . It was BlackBerry ’s big M&A tidy sum to date — all in immediate payment — and saw Cylance incorporate its technical school with BlackBerry ’s existing platform , but largely persist in to operate as a standalone business unit of measurement .
But Cylance , launch in 2015 by former McAfee and Intel duo Stuart McClure and Ryan Permeh , struggle to assert a bridgehead in an more and more crowd cybersecurity sector . The company ’s AI - powered cyberthreat - analyse software system lento lost ground to rivals;accordingto IDC , Cylance had just 1.3 % of the marketplace for end point certificate in 2022 . ( termination security pertain to security for devices like screen background , laptop , and mobile devices . )
GiammatteoblamedCylance ’s failure in part on the market ’s teddy to threat detection and response product , which Cylance does n’t offer . “ Cylance [ would require ] substantial investing to drive increase , ” hesaidon a late BlackBerry salary call .
Cylance had also become a major drain on BlackBerry ’s broader cybersecurity division , posting a record $ 51 million loss for the fiscal twelvemonth ending February 28 , 2025 . Earlier this twelvemonth , BlackBerry CFO Tim Foote say that the company would look to redirect spending from Cylance and other costly areas to grow its more profitable building block , like its safe communication business .
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Investors seem to approve . BlackBerry Malcolm stock was upnearly 16 % as of mid - day ET .
In ablog post , Arctic Wolf CPO Dan Schiappa call Cylance ’s approach to endpoint security “ fundamentally unequalled , ” and said it would enable Arctic Wolf to bring to market an “ innovative , expanded , and refined endpoint security solution . ”
“ For Cylance customer , the termination certificate products you trust on every day will not only proceed to be full support , but will also benefit from the resource and expertness of Arctic Wolf , ” Schiappa said . “ end point security is a key precedency for us as a company , and as one of the head political program companies in the cybersecurity space , Arctic Wolf is unambiguously fit out to provide the resource , invention , and expertise needed to take Cylance ’s endpoint products to the next layer . ”
Cylance is Arctic Wolf ’s sixth acquisition since its introduction in 2012 . The business firm ’s others include secure intelligence information political platform RootSecure , threat hunting platform Rank Software , surety training startup Habitu8 , digital forensics firm Tetra Defense , and security orchestration software developerRevelstoke .
