BlackBerry acquires Good Technology for $425 million in cash
In what has been pegged as a decision aligned with BlackBerry’s strategy, the Canadian leader in secure mobile communications has revealed its decision of acquiring Google Technology for $425 million in cash.
Through the acquisition, BlackBerry is intending to expand its ability to offer a unified, secure mobility platform with applications for any mobile device on any operating system. Thanks to Good’s technology, BlackBerry’s mobility management will now have more secure applications and containerization that protects end user privacy.
BlackBerry will see expansion in its ability to offer cross-platform Enterprise Mobility Management solutions that are critical in a world with varying deployment models such as bring-your-own-device (BYOD); corporate owned, personally enabled (COPE); as well as environments with multiple user interfaces and operating systems.
“By acquiring Good, BlackBerry will better solve one of the biggest struggles for CIOs today, especially those in regulated industries: securely managing devices across any platform. By providing even stronger cross-platform capabilities our customers will not have to compromise on their choice of operating systems, deployment models or any level of privacy and security,” said John Chen, BlackBerry Executive Chairman and CEO.
Good’s technology will integrate with BlackBerry’s enterprise portfolio and trusted global network, creating a comprehensive management solution for all mobile devices that protects customers’ security and privacy. This holistic experience will provide customers with greater mobile enterprise productivity, including seamless integration of capabilities across multiple applications, including BBM, WatchDox, Good Work and other value added services.
With Good, BlackBerry will expand its presence with global enterprise and government customers. Good serves more than 6,200 organizations, including more than half of the Fortune 100, all of the Fortune 100 commercial banks, aerospace and defense firms, and leaders across healthcare, manufacturing and retail. BlackBerry is the trusted mobility partner of all G7 governments, 16 of the G20 governments, 10 out of 10 of the largest global banks and law firms, and the top five largest managed healthcare, investment services, and oil and gas companies.
BlackBerry expects the transaction to be completed toward the end of the company’s 2016 fiscal third quarter and is subject to customary closing conditions, including regulatory approvals. The company anticipates the acquisition to be accretive to earnings and cash flow within the first year after closing. BlackBerry also expects to realize approximately $160 million in GAAP revenue from Good in the first year, including the impact of an expected write-down of certain deferred revenue of Good.