BlackBerry Agrees To Buy Good Technology For $425 Mln In Cash

With BlackBerry struggling in the consumer realm for a while, it has been focusing more on the enterprise mobile security in recent times with offerings such as BES12, and this is an area that Good Technology also operates in.

Enhanced by Good, BlackBerry will expand its ability to offer a unified, secure mobility platform with applications for any mobile device on any operating system. Good has traditionally focused on iOS, Android and, to a lesser extent Windows management.

For BlackBerry, spending $425 million of its $3b reserve is a big deal, and must need it has larger plans for Good than merely integrating it into what is already considered to be one of the most comprehensive enterprise management solutions out there.

BlackBerry CEO John Chen said Good will enable the company to “enhance its sales and distribution capabilities and further grow its enterprise software revenue stream”.

While it’s no secret where BlackBerry sees its future, this deal is a clear sign that it’s doubling-down on the mobile security market.

BlackBerry will benefit from the acquisition of Good because it won’t have to work hard to convince CIOs it can manage more than its own devices. Indeed, Good Technology claims more than 6,000 clients, across banks, aerospace, healthcare, defense firms, and more.

Motorola bought Good Technology in 2007 for over than $400 million, then in 2009 sold the company to Visto for an undisclosed amount. This is the highest certification level recognized internationally under the Common Criteria program, and is globally regarded as the standard of quality for handling sensitive government data.

The deal is expected to close in BlackBerry’s fiscal third quarter. The company expects the acquisition to be accretive to earnings and cash flow within the first year after closing. Here’s a look at Good’s financials.