BlackBerry Limited elevated its stakes on cyber security and artificial intelligence accounting with $1.4 billion purchase of California-based machine-learning specialists Cylance on Friday. The Canadian technology company, which used to direct the smartphone market an era ago, has now moved to retailing software to manage mobile devices as well as developing areas like autonomous cars.
Cylance, which is privately owned uses machine learning to obstruct security breaches before they transpire. Rather than reacting after a breach, its applications tend to block the malware or penetration attempts. According to some sources, Cylance has over 3.500 active enterprise customers and has been considering filing for a stock market initiation. BlackBerry stated that apart from the $1.4 billion that BlackBerry is supposed to pay, this deal also comprises of the hypothesis of Cylance’s unvested employee inducements.
John Chen, CEO of BlackBerry said, “Cylance’s leadership in AI (artificial intelligence) and cyber security will directly foil our entire portfolio”. Along with this, the Chief Executive of the California-based company, Stuart McClure quoted that it is possible for them to leverage BlackBerry’s strength in mobile communications and security to adapt its AI technology.
BlackBerry has claimed that Cylance will continue to operate as a separate business unit after the deal closes and it is expected to shut by February 2019. In the end, it has also been observed that the listed shares of BlackBerry were slightly up in the light pre-marketing trading.