May 19, 2020

Blackberry snaps up cybersecurity firm Cylance for $1.4bn

blackberry
Acquisition
Artificial intelligence
Cybersecurity
Laura Mullan
2 min
Blackberry snaps up cybersecurity firm Cylance for $1.4bn

BlackBerry has made the biggest acquisition in the company’s history, spending US$1.4bn to acquire cybersecurity firm Cylance. 

BlackBerry used to be better-known for its mobile devices, selling almost 52mn devices in 2011, according to Gartner

Since then, the firm has pivoted its focus towards enterprises services and, in particularly, cybersecurity. 

BlackBerry says that the acquisition of AI-based cybersecurity firm, Cylance, will complement its entire technology portfolio. 

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“Cylance’s leadership in artificial intelligence and cybersecurity will immediately complement our entire portfolio, UEM and QNX in particular,” said John Chen, Executive Chairman and CEO of BlackBerry. 

“We are very excited to onboard their team and leverage our newly combined expertise.

“We believe adding Cylance’s capabilities to our trusted advantages in privacy, secure mobility, and embedded systems will make BlackBerry Spark indispensable to realising the Enterprise of Things.”

Privately owned Cylance uses machine learning to preempt security breach before they occur.

By seeking to block malware or cyber threats, they preemptively tackle cybersecurity rather than reacting after a breach.
 
The firm has raised almost US$300bn to date, with investors including Dell Technologies, KKR, Blackstone, DFJ and Khosla Ventures. 
 
BlackBerry said it plans to integrate Cylance’s technology with the BlackBerry spark in the future. 
 
BlackBerry Spark is a communications platform for the Enterprise of Things (EoT) that aims to “create and leverage trusted connections between any endpoint.” 
 
Commenting on the acquisition, Stuart McClure, Co-Founder, Chairman, and CEO of Cylance, added: “Our highly skilled cybersecurity workforce and market leadership in next-generation endpoint solutions will be a perfect fit within BlackBerry where our customers, teams and technologies will gain immediate benefits from BlackBerry’s global reach.
 
“We are eager to leverage BlackBerry’s mobility and security strengths to adapt our advanced AI technology to deliver a single platform.”
 
The acquisition is set to close before February 2019. 

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May 15, 2021

M&A activity key lever for future tech sector growth

Technology
dealmaking
EY
M&Aactivity
Kate Birch
2 min
With M&A activity in the technology sector soaring, dealmaking is likely to be the key lever for growth as businesses look to recover post-pandemic

Despite the continuing uncertainty of the pandemic, the tech sector has witnessed soaring dealmaking activity over the past year, rocketing in the second half of 2020, with the last quarter of 2020 a record one for M&A activity, and momentum continuing into 2021.

Dealmaking in tech sector soars in past year

And the latest figures bear this out with the number of technology M&A deals totalling US$208.44bn globally in Q1 2021, according to GlobalData. While the US holds top spot both in volume of deals (1034) and total value (US$140.61bn), Europe ranked next with 649 deals (US$44.49bn) with the UK continuing its reign as Europe’s biggest M&A market with 204 deals.

In particular, megadeals – those valued at US$5bn or more – soared in 2020 representing 59% of all global technology sector deal value in 2020, up from 47% in 2019, according to the latest edition of the EY Technology Global Capital Confidence Barometer.

This tech sector trend towards megadeals is backed up by EY’s CCB data, with 16% of tech sector respondents planning to pursue transformative deals valued at US$5bn or more in the near-term.

While technology deal activity “all but stopped at the beginning of 2020 after fluctuating between historic highs and lows, companies pivoted quickly and tech M&A exploded in the second half of the year”, says Barak Ravid, EY Global TMT Leader for Strategy and Transactions. 

M&A activity level for tech sector growth

Looking ahead to the future, technology executives are optimistic, with nearly half (47%) expecting profitability to fully rebound this year, according to CCB data, compared to 23% across all sectors, and with more than half (51%) planning to pursue M&A in the next year in order to sustain growth.

According to Ravid, M&A activity is increasingly becoming a key lever for growth as businesses look to recover.

“To position themselves for future revenue growth, tech companies are now adjusting their M&A strategy to focus more on a target’s business resilience, digital technology alignment and to gain market share through consolidation,” says Ravid.

However, with an increasingly competitive deal market and ongoing geopolitical tensions, the majority of tech execs expect to see more competition in the bidding process for assets over the next year, primarily from private capital.

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