BlackBerry has had a bit of a hard time in the market thus far this year. However, the company is reorganizing and making big moves. Most recently, BBRY penned a definitive agreement to acquire mobile security rival, Good Technology. Today, we’ll talk about the details of the acquisition, why BBRY would want to acquire the company, and what we can expect to see moving forward. So, let’s get right to it…
BBRY To Acquire Good Technology: Here’s The Details
BlackBerry announced earlier today that it has entered into a definitive agreement to purchase a rival mobile security company known as Good Technology. According to the announcement, BlackBerry will acquire Good Technology for a cash payment of $425 million. The acquisition is expected to be completed by November 28th, 2015 and is subject to customary closing conditions.
Why Would BlackBerry Want To Acquire Good Technology?
In the announcement about the acquisition, BlackBerry said that it expects the acquisition to give it a boost in both earnings per share and cash flow within the first year of the acquisition. The top line benefit in the first year is expected to be around $160 million. As a result of the acquisition, BlackBerry expects to be in a position to offer a unified, secure mobility platform with multiple applications for mobile devices running on any operating system.
This is also a move for the enterprise clients. After all, the enterprise marketplace is one of the fastest growing in the world at the moment. The company said that as a result of the acquisition, corporate clients will easily be able to manage smartphones running on different operating systems, ultimately making corporations more efficient in operations.
What We Can Expect To See Moving Forward
While BlackBerry has been struggling for quite some time now, I’ve kept my faith in the company. For me, this year hasn’t necessarily been a year of declines; it’s been a year of reorganization. The reality is that, throughout the year, the company has made several moves to re-position itself as a leader in the smartphone market place. This means less focus on the handsets it offers and more focus on offering a secure environment and top-notch software. While the vision may be a bit blurry to some at the moment, I have a feeling that 2016 is going to be a great year for BlackBerry.
What Do You Think?
Where do you think BBRY is headed and why? Let us know in the comments below!