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BlackBerry, the Canadian technology company that dominated the smartphone market a decade ago, is set to acquire into its coffers California-based artificial intelligence and cyber-security Cylance.
TheNewsGuru (TNG) reports BlackBerry on Friday said it is earmarking $1.4 billion, over N500 billion, for the purchase, after shifting to selling software for managing mobile devices, as well as emerging areas like autonomous cars.
Cylance uses machine learning to pre-empt security breaches before they occur. Its applications seek to block malware or infiltration attempts rather than react after a breach.
Cylance, which has over 3,500 active enterprise customers, had been considering filing for a stock market floatation, according to a report in Business Insider.
“Cylance’s leadership in artificial intelligence and cyber-security will immediately complement our entire portfolio,” BlackBerry CEO John Chen said in a statement.
The California-based company’s Chief Executive Stuart McClure, in turn, said it would be able to leverage Blackberry’s strength in mobile communications and security to adapt its AI technology.
Besides the $1.4 billion that BlackBerry will pay, the deal also includes the assumption of Cylance’s unvested employee incentives, BlackBerry said.
Cylance will continue to operate as a separate business unit after the deal closes, BlackBerry said. The deal is expected to close by February 2019.