Arctic Wolf to acquire Cylance from BlackBerry for USD $160m

Arctic Wolf has announced its agreement to acquire Cylance, the AI-powered endpoint security provider from BlackBerry.

This acquisition will see Arctic Wolf integrating Cylance's technology into its Aurora Platform, aimed at addressing advanced cybersecurity threats through improved endpoint security.

The transaction, valued at USD $160 million subject to certain adjustments, involves an immediate USD $80 million cash payment to BlackBerry and approximately 5.5 million of Arctic Wolf's common shares, with an additional USD $40 million to follow after one year.

Arctic Wolf's President and Chief Executive Officer, Nick Schneider, emphasised the impact of this deal: "Security has an operations and effectiveness problem and endpoint solutions alone have failed to live up to the outcomes they have promised for years. By incorporating Cylance's endpoint security capabilities into our open-XDR Aurora platform, we will be addressing a rampant need for a truly unified, effective security operations that delivers better outcomes for customers. We believe we will be able to rapidly eliminate alert fatigue, reduce total risk exposure, and help customers unlock further value with our warranty and insurability programs."

John Giamatteo, Chief Executive Officer of BlackBerry, commented on the acquisition, expressing enthusiasm: "I am incredibly excited to partner with Arctic Wolf through this agreement. We see this transaction as a win-win for our shareholders and all other stakeholders. Our customers will realise the benefits of continuity of service and the expertise that a global cybersecurity leader like Arctic Wolf provides. Arctic Wolf benefits by adding Cylance's endpoint security solutions to its native platform. Finally, as Arctic Wolf leverages its scale to build upon and grow the Cylance business, BlackBerry will benefit as a reseller of the portfolio to our large government customers and as a shareholder of the company."

The integration of Cylance into Arctic Wolf's offerings will enhance its security operations capabilities, delivering a single platform for analysis and response to security threats. Dan Schiappa, Chief Product and Services Officer at Arctic Wolf, noted, "Organisations are looking to unify tools and operations via a single platform that can effectively analyse and respond to security threats, drive consistent security outcomes, and demonstrably minimise risk. In the past, this has been a near-impossible, costly goal for resource-constrained leaders. By adding endpoint security to our platform, we will be delivering the security outcomes organisations want in one, frictionless operational platform to go toe-to-toe with today's advanced threats, while maintaining our commitment to customers and partners leveraging other endpoint solutions."

Despite this sale, BlackBerry's Secure Communications portfolio, including BlackBerry UEM, AtHoc, and SecuSUITE, will remain unaffected and continue as an integral part of its business.

The purchase, pending customary closing conditions, is expected to complete in BlackBerry's fourth fiscal quarter. The acquisition reflects Arctic Wolf's strategic expansion to meet growing demands for comprehensive end-to-end cybersecurity solutions amidst increasing threats. The acquisition underscores a significant shift towards platform-based security solutions as organisations seek consolidation of their security tools and services.