BlackBerry to Buy Good Technology for $425 Million
September 04 2015 - 09:20AM
Dow Jones News
BlackBerry Ltd. said Friday it would buy closely held Good
Technology Corp. for $425 million, in a move to further bolster the
Canadian company's efforts to sell mobile security software to
government and corporate customers.
Stung by the dramatic drop in fortunes of its smartphone
business since 2013, BlackBerry is betting in part on
device-management software to reignite growth.
Good Technology, based in Sunnyvale, Calif., competes with
BlackBerry in offering software that allows companies to manage
mobile devices used by employees on corporate networks. By
acquiring Good, BlackBerry eliminates a competitor to help bolster
its competitive advantage against Citrix Systems Inc. and other
rivals.
"Like BlackBerry, Good has a very strong presence in enterprises
and governments around the world and, with this transaction,
BlackBerry will enhance its sales and distribution capabilities and
further grow its enterprise software revenue stream," Chief
Executive John Chen said in a statement.
The deal also provides BlackBerry with additional revenue, which
has been under pressure amid a slow takeup of the company's latest
version of its mobile device management software.
BlackBerry said it expects to realize approximately $160 million
in revenue from Good in the first year after closing.
Write to Ben Dummett at ben.dummett@wsj.com
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(END) Dow Jones Newswires
September 04, 2015 09:05 ET (13:05 GMT)
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