BlackBerry Ltd, maker of smartphones for corporate crowd, is all set to acquire Good Technology, a mobile software company for $425 million in cash, adding to the list of recent acquisitions to strengthen the software business.
Very well-known for taunting and competing with Blackberry, the software security firm Good Technology looks like a good fit for the company. This acquisition aims to win back some of the defense and financial industry clients that let go of the Blackberry hardware and software in the recent past. Good Technology would help its clients get access to the list of Blackberry’s professional security services.
In a research note, Morningstar’s Brian Collelo mentioned, “Good with its customer base of 6200 organizations, has been a leader in EMM for quite some time, as evidenced by Gartner’s rating of good as “Leader” in its magic quadrant for EMM in June 2015.” Good Tech functions in 189 countries with its mobile security solution, filed IPO plans in May 2014 but postponed the offerings despite the worsening market conditions.
With the acquisition of Good, Blackberry, whose core lies on securing devices, would be able to lay their hands on more than 160 issued patents and would strengthen the areas where Blackberry is lagging. Banking, aerospace and defense verticals would add-on to its core, reinforce security of mobile apps, improve it cross-platform offerings and boost its sales network. These are expected to help Blackberry penetrate better in to the market.
Blackberry’s CEO John Chen claims the acquisition is a perfect fit as both the companies’ heart and soul lies on the security. He added, “We do MDM and they do application management analytics well.” It plans to realize about $160 million in revenue in a year’s time following the acquisition.
Though no immediately, Blackberry agrees that it has lost millions with the various vain attempts to win back the mobile device relevancy. The company should have positioned itself as THE secure mobile device management platform and proving why the Blackberry ecosystem is the best way to manage mobile environment. However, with this acquisition the company tries to win back its lost position.
Shares of the company increased as much as five per cent in early morning trading in Toronto, but fell later in a day 1.7% to $9.69 at 2.45pm ET. The stock has fallen 23.9% till date in 2015.
Christy Wyatt, CEO of Good Technology explained, “Joining forces will enable customers and partners to benefit from our combined secure mobility expertise, enabling Blackberry to deliver the most comprehensive secure mobile platform in the market for all mobile devices protecting customers’ security and privacy. Together, we have more resources and the ability to drive further innovation and high value solutions.”
“Our acquisition of Good will mean the end of compromise for customers. We will be able to provide even stronger cross-platform capabilities—ensuring customers won’t have to make any sacrifices in operating systems, deployment models, or any level of privacy and security in their mobile environments,” stated Marty Beard, COO of BlackBerry in the Inside BlackBerry interview. “I truly believe that combined, BlackBerry and Good will raise the bar in the enterprise mobility market, enabling our customers to be more productive and protecting their sensitive data across all of their mobile end points.”