Arctic Wolf Acquires BlackBerry's Cylance for $160M, Reshaping AI Cybersecurity Landscape

BlackBerry to sell Cylance security assets to Arctic Wolf

The sale comes six years after BlackBerry purchased Cylance for $1.4bn in cash. Canadian smartphone player BlackBerry has agreed to sell its AI security asset Cylance to cybersecurity play Arctic Wolf for $160m. In a blogpost, Arctic Wolf's chief product and services officer Dan Schiappa said the acquisition will allow the company to introduce a "unique approach" to endpoint security. "This innovation is designed to make a meaningful difference in how organisations combat cyber risk, elevating both protection and operational efficiency," he said. The deal between the two companies comes six years after BlackBerry first acquired Cylance for $1.4bn in cash. At the time it was the biggest acquisition the company had ever made. Now, having sold it for much less than it purchased it for, BlackBerry's chief executive officer, John Giamatteo, said the deal is a "win-win" for both shareholders and other stakeholders. "Our customers will realise the benefits of continuity of service and the expertise that a global cybersecurity leader like Arctic Wolf provides," he said. "Arctic Wolf benefits by adding Cylance's endpoint security solutions to its native platform. Finally, as Arctic Wolf leverages its scale to build upon and grow the Cylance business, BlackBerry will benefit as a reseller of the portfolio to our large government customers and as a shareholder of the company." The deal is expected to close in BlackBerry's fourth fiscal quarter, in the first half of 2025, subject to closing conditions. As well as $160m in cash, BlackBerry will also receive 5.5m common shares of Arctic Wolf. There will be no impact to its secure communications portfolio of businesses and Cylance customers will continue to be fully supported, with Schiappa adding that endpoint security is a key priority for Arctic Wolf. "Arctic Wolf is uniquely equipped to provide the resources, innovation and expertise needed to take Cylance's endpoint products to the next level," he said. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

BlackBerry selling Cylance AI cybersecurity business to Artic Wolf

Cylance uses artificial intelligence to help users detect malware and prevent cyberattacks. Under the deal, Arctic Wolf will pay US$160 million of cash, subject to certain adjustments, and approximately 5.5 million common shares of Arctic Wolf, which is a privately held security software and services company. After allowing for the purchase price adjustments, the companies say BlackBerry will receive about US$80 million of cash at closing and about US$40 million of cash one year following the closing. BlackBerry acquired Cylance in February 2019 in a US$1.4-billion deal. The deal with Arctic Wolf is subject to customary closing conditions and is expected to close in BlackBerry's fourth quarter.

Arctic Wolf To Acquire Cylance Assets From BlackBerry For $160M

The security operations platform provider said it will enhance its platform with the integration of 'Cylance's trailblazing suite of endpoint security capabilities.' Arctic Wolf said Monday it will enhance its security operations platform with the planned acquisition of the "trailblazing" endpoint security tool Cylance from its owner, BlackBerry. The acquisition is pegged at $160 million in cash, in addition to shares in privately held Arctic Wolf, and is focused on the Cylance endpoint security "assets," Arctic Wolf said. [Related: Arctic Wolf CEO On Why 'Platformization' In Security Is 'Definitely Happening'] BlackBerry paid $1.4 billion to acquire fast-growing Cylance in 2018, at a time when the company was an endpoint security up-and-comer rivaling established players in the market while eyeing an initial public offering. Cylance went on to become a centerpiece of BlackBerry's reinvention of itself as a provider of cybersecurity offerings, following the vendor's move away from the mobile device market. In a news release Monday, Arctic Wolf called Cylance "the pioneer of AI-based endpoint protection" that is "trusted by thousands of organizations" globally. Arctic Wolf expects to leverage the Cylance technology to "bolster" its security operations platform, which already includes MDR (managed detection and response) combined with capabilities such as vulnerability management, managed security awareness and cloud security. The platform will be significantly enhanced "with the addition of Cylance's trailblazing suite of endpoint security capabilities and enhanced AI functionality," Arctic Wolf said in the release. Along with $160 million in cash, the agreement with BlackBerry includes 5.5 million common shares of Arctic Wolf, which has been valued at $4.3 billion by its investors and has considered pursuing an IPO. The deal is expected to close in BlackBerry's fourth fiscal quarter, which concludes at the end of February 2025.