Source URL: https://www.theregister.com/2024/12/17/blackberry_cylance_sale_arctic_wolf/
Source: The Register
Title: BlackBerry offloads Cylance’s endpoint security products to Arctic Wolf
Feedly Summary: Fresh attempt to mix the perfect cocktail of IoT and Infosec
BlackBerry’s ambition to mix infosec and the Internet of Things has been squeezed, after the Canadian firm announced it is offloading Cylance’s endpoint security products.…
AI Summary and Description: Yes
Summary: BlackBerry has sold its Cylance endpoint security products to Arctic Wolf for $160 million, indicating a significant strategic shift. The deal suggests Arctic Wolf aims to enhance the endpoint security market by integrating Cylance’s capabilities with its own AI-driven security operations platform, Aurora.
Detailed Description:
– BlackBerry’s acquisition and divestiture of Cylance illustrate the volatile nature of the cybersecurity market, especially in the realm of endpoint security.
– BlackBerry purchased Cylance in 2018 for $1.4 billion, an investment intended to bolster its capabilities in endpoint management and IoT security.
– The recent sale for $160 million reflects not only a substantial financial loss but also a broader trend where companies are reassessing their strategies in cybersecurity.
Key Points:
– **New Ownership**: Arctic Wolf, known for enhancing cyber-defense products using AI, aims to integrate Cylance’s technologies into its open-XDR Aurora platform.
– **Operational Focus**: Arctic Wolf’s CEO expressed intentions to address the operational effectiveness within endpoint security, tackling issues like alert fatigue and overall risk exposure.
– **Transaction Insights**:
– The deal structure includes an immediate payment of $80 million, followed by another $40 million a year later, in addition to $5.5 million in shares.
– Despite selling off Cylance, BlackBerry plans to continue reselling the combined portfolio, suggesting a cooperative relationship continues post-sale.
– **Market Reaction**: Investor sentiment was positive, as BlackBerry’s shares rose by approximately 15% following the announcement, pointing to confidence in the new direction.
This transaction emphasizes the evolving market landscape in cybersecurity, where the integration of artificial intelligence is becoming increasingly vital for operational efficiency and effectiveness. It serves as a case study for professionals in security and compliance on how merger and acquisition activity reflects strategic pivots in the industry.