In a significant move that will reshape the cybersecurity landscape, Arctic Wolf and BlackBerry Limited (NYSE: BB; TSX:BB) announced today that they have entered into a definitive agreement for Arctic Wolf to acquire BlackBerry’s Cylance endpoint security assets.
The deal, valued at $160 million in cash and approximately 5.5 million common shares of Arctic Wolf, is expected to close in BlackBerry’s fourth fiscal quarter.
Key Points of the Acquisition:
- Arctic Wolf will pay $160 million, with $80 million in cash at closing and $40 million one year later.
- The deal includes approximately 5.5 million common shares of Arctic Wolf.
- The transaction is subject to customary closing conditions.
This strategic acquisition aims to bolster Arctic Wolf’s position as a market-leading platform provider in AI-powered security operations.
By integrating Cylance’s AI-based endpoint protection capabilities into its open-XDR Aurora platform, Arctic Wolf seeks to address the growing demand for end-to-end security solutions and simplify the increasingly complex cybersecurity landscape for organizations.
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Nick Schneider, President and CEO of Arctic Wolf, emphasized the importance of this acquisition in addressing the “operations and effectiveness problem” in security.
He stated, “By incorporating Cylance’s endpoint security capabilities into our open-XDR Aurora platform, we will be addressing a rampant need for a truly unified, effective security operations that delivers better outcomes for customers.”
For BlackBerry, this move allows the company to focus on its core businesses while maintaining a stake in the future success of Cylance through its shareholding in Arctic Wolf. John Giamatteo, CEO of BlackBerry, described the transaction as a “win-win for our shareholders and all other stakeholders.”
The acquisition is set to have far-reaching implications for the cybersecurity industry:
- Enhanced Platform Capabilities: Arctic Wolf will now offer one of the largest open XDR security platforms in the industry, supporting over 15 endpoint solutions.
- Continued Innovation: The integration of Cylance’s AI-driven prevention and detection capabilities with Arctic Wolf’s comprehensive security operations approach promises to deliver cutting-edge protection for organizations of all sizes.
- Market Consolidation: This deal represents a trend towards consolidation in the cybersecurity market, as companies seek to offer more comprehensive, integrated solutions.
- Customer Benefits: Organizations can expect more streamlined and effective security operations, potentially reducing alert fatigue and overall risk exposure.
As the cybersecurity threat landscape evolves, this acquisition positions Arctic Wolf to meet the growing demand for unified, AI-powered security solutions. The move is expected to drive customer value across various industries and security maturity levels.
The deal is anticipated to close by the end of BlackBerry’s fourth fiscal quarter, subject to customary closing conditions. Both companies will host calls and provide additional information for investors and stakeholders in the coming days.
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The post Arctic Wolf Acquires BlackBerry’s Cylance For $160 Million in Cash appeared first on Cyber Security News.
