BlackBerry selling Cylance AI cybersecurity business to Arctic Wolf

A BlackBerry employee works at the company's Network Operating Centre in Waterloo, Ont., on May 29, 2018. (Andrew Ryan / The Canadian Press)

TORONTO — BlackBerry Ltd. has signed a deal to sell its Cylance security business to Arctic Wolf.

Cylance uses artificial intelligence to help users detect malware and prevent cyberattacks.

Under the deal, Arctic Wolf will pay US$160 million of cash, subject to certain adjustments, and approximately 5.5 million common shares of Arctic Wolf, which is a privately held security software and services company.

After allowing for the purchase price adjustments, the companies say BlackBerry will receive about US$80 million of cash at closing and about US$40 million of cash one year following the closing.

BlackBerry acquired Cylance in February 2019 in a US$1.4-billion deal.

The deal with Arctic Wolf is subject to customary closing conditions and is expected to close in BlackBerry's fourth quarter.

This report by The Canadian Press was first published Dec. 16, 2024.