Arctic Wolf and BlackBerry have announced a definitive agreement for Arctic Wolf to acquire BlackBerry's Cylance endpoint security assets. The acquisition is valued at $160 million in cash and approximately 5.5 million common shares of Arctic Wolf. After adjustments, BlackBerry is expected to receive approximately $80 million of cash at closing and around $40 million of cash one year following the closing.
Arctic Wolf, recognized as a leader in AI-powered security operations, aims to enhance its security operations Aurora platform with best-in-class endpoint prevention, detection, and response through the addition of Cylance's suite of endpoint security capabilities and enhanced AI functionality.
The proposed transaction is anticipated to close in BlackBerry's fourth fiscal quarter and is subject to customary closing conditions.
With the integration of Cylance into its portfolio, Arctic Wolf aims to provide a world-class endpoint protection solution, complementing its endpoint offering with one of the largest commercial security operation centers (SOCs) in the world, delivering unified security operations and comprehensive attack surface coverage.
Cylance has been recognized as a market leader, known for stopping 98% of attacks before they begin and was named 2024 customers' choice for endpoint protection platforms (EPP) by Gartner Peer Insights for the second consecutive year.
Arctic Wolf's President and CEO, Nick Schneider, emphasized the significant need for a unified, effective security operations platform that delivers better outcomes for customers. He expressed confidence in rapidly eliminating alert fatigue, reducing total risk exposure, and helping customers unlock further value with warranty and insurability programs.
BlackBerry's CEO, John Giamatteo, sees the transaction as a win-win for shareholders and all stakeholders, with customers benefitting from continuity of service and the expertise provided by Arctic Wolf, while Arctic Wolf benefits from adding Cylance's endpoint security solutions to its native platform.
The acquisition is anticipated to expand Arctic Wolf's position as a market-leading platform provider, offering coverage from the endpoint to the edge, and building one of the largest open XDR security platforms in the industry, with the option to leverage more than 15 supported endpoint solutions.
Today the company's shares have moved 1.0% to a price of $3.12. For the full picture, make sure to review BlackBerry's 8-K report.
