BlackBerry to buy Good Technology for US$425 million; gets complementary products

By on September 6, 2015

BlackBerry logo
BlackBerry logo

WATERLOO, Ont. – BlackBerry Ltd. expects to strengthen its position in the Apple world by integrating California-based Good Technology and its products through a US$425-million friendly acquisition announced Friday.

The pioneering smartphone company, based in Waterloo, Ont., said two-thirds of Good Technology’s product activations are on devices using Apple’s iOS and the rest are on Android and Windows devices.

BlackBerry(TSX:BB) has its own operating system but has been working to broaden its product reach, including through closer integration with Android-driven devices from Samsung.

The two companies have a long-standing focus on providing highly secure technology for organizations and they have complementary strengths in different market segments, BlackBerry executive chairman John Chen said Friday.

“What’s most attractive to me is that the product platforms are extremely complementary,” Chen told analysts on a conference call.

“The combination of BlackBerry and Good will have market leadership and critical mass.”

Chen said BlackBerry is strong in mobile device management while Good’s strength is applications management and analytics.

BlackBerry has been losing market share and revenue to rival products such as Apple’s iPhone and Samsung Galaxy smartphones.

Under Chen’s leadership, BlackBerry has reduced the size of its workforce while remaining an independent business working to solidify or grow its position in several market segments.

BlackBerry’s next financial report will be released Sept. 25, before markets open. Analysts have estimated its revenue will be about US$610 million, down from US$916 million in the comparable period last year, and that it continued to post losses.

The Good Technology deal is subject to certain conditions, but BlackBerry expects the transaction to close by late November, when BlackBerry’s third quarter ends.