BlackBerry to buy Good Technology in million dollar deal

BlackBerry has been fleshing out its mobile device management strategy. It is targeting multiple addressable markets, but chief among them is the enterprise mobility management (or EMM) market.

BlackBerry has acquired Good Technology for $425 million in cash. The Organization ‘s four aspects of company are Apparatus business, Enterprise Services, BlackBerry Technology Solutions (BTS) business and Messaging.

MB: As Christy mentioned earlier, Good technology will contribute to the growth of our Internet of Things platform to go beyond mobile devices and manage new, connected endpoints.

Ahead of the long holiday weekend, BlackBerry confirmed its latest acquisition and it could come as a boon to connected healthcare professionals struggling to juggle communications platforms and mobile devices across numerous platforms. Blackberry shares have decreased -32.34% over the past 200 days, while the S&P500 Index has dropped -6.36% during the same time.

At the end of May, BlackBerry had $US3.32 billion in cash and investments, up $US50m from the prior quarter.

Good Technology, based in Sunnyvale, California, builds applications to help employees work securely from their personal phones.

BlackBerry could be in a better position to monetize Good Technology’s patents by bundling them into its existing licensing deals, Larson said. Good has knowledge of multi-OS guidance along with 64percent of activations from iOS gadgets, along with a wide Android and Windows visitors.

This merger will also help BlackBerry battle against Citrix Systems, MobileIron and VMware’s AirWatch in the device-management space, reports The Australian.

BlackBerry said it expects to make an extra $160 million from the acquisition in the first year after the deal closes. The average 12-month price objective among brokerages that have issued ratings on the stock in the previous year is C$10.35. This made a buyout offer more appealing to Good Technology’s owners relative to an IPO.

There remains market skepticism over whether BlackBerry can convert enough EZ-Pass customers to meet its $500 million revenue bogey.

The Canadian company expects to complete the purchase by the end of November. 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.

For the past two years, BlackBerry CEO John Chen has been trying to shift the company’s primary focus from hardware to software. The Enterprise Services business of BlackBerry offers enterprise services and products.