Enterprise software supplier Blackberry confirmed today that it has agreed to acquire US-based cybersecurity technology provider Cylance, allowing corporates Dell, Citi and Capital One to exit.
The deal will consist of $1.4bn in cash and the assumption of unvested employee incentive awards. Blackberry’s interest in the acquisition was first reported by Business Insider, and the deal is expected to close by the end of February 2019.
Cylance produces predictive endpoint cybersecurity products that utilise artificial intelligence to combat malware and fileless attacks, detecting and responding to threats. Its technology will be used to enhance BlackBerry Spark, Blackberry’s connected enterprise communications platform.
Stuart McClure, Cylance’s co-founder, chairman and CEO, said: “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.”
Cylance had raised $297m in funding since being founded in 2012, most recently securing $120m in a June 2018 round led by asset management firm Blackstone’s Tactical Opportunities unit.
Financial services firm Citi had invested in Cylance’s $100m series D round, which was closed in 2016, through its Citi Ventures unit. The round was co-led by Blackstone Opportunities Fund and Insight Venture Partners and included undisclosed existing investors.
The company had previously received $42m in series C funding from investors including Dell Ventures and Capital One Ventures, respective subsidiaries of computing technology producer Dell and financial services firm Capital One, in 2015.
DFJ Growth led the round, which also featured TenEleven Ventures, KKR, Thomvest, DraperNexus and existing investors Blackstone, Fairhaven Capital and Khosla Ventures.
