It would seem as though company buyouts are on the agenda for many tech companies this September. Not one to lose out on trends, Blackberry Ltd. announced its $425 million acquisition of Good Technology on Friday.
This may come as a surprise for many considering that Blackberry and Good have often come into conflict in the past. The two firms have been rivals for years.
The deal will allow Blackberry to offer its users rounded security. With Good, Blackberry apps will grow its capacity to produce safer and more protective items across all its platforms.
A Great Deal for Blackberry Ltd.
Snapping up Good makes great business sense. The two entities work in the same sphere. Many people merely recognize Blackberry as a mobile phone provider, but the company has actually worked in the mobile security industry for more than 10 years.
“Our industry is very competitive and is constantly evolving, so it’s not surprising that we’ve taken some aggressive positions over the years,” says the company’s Marty Beard. “When you look more closely, you see that we share a common heritage in security and our strengths compliment each other very well.”
The mobile security industry is very volatile. Entities in this realm have to consider user defence while constantly evolving to keep up with new threats. Throw competition into the mix and you end up in a very unsavory place.
Fulfilling Blackberry’s Agenda
Offering the most secure mobile security on the market is one of Blackberry’s goals. Snapping up good will only help the company get there quicker. Good serves more than 6,000 clients in the fields of aerospace, banks, defense firms and health-care.
“Like BlackBerry, Good has a very strong presence in enterprises and governments around the world and, with this transaction, BlackBerry will enhance its sales and distribution capabilities and further grow its enterprise software revenue stream,” says Blackberry CEO John Chen.
Blackberry has been working hard on reinventing itself. The company wishes to be seen as more than a phone maker. The company claims that Good will give a $160 million revenue boost in the first year.
The problem may arise where Blackberry’s existing components have to fit a company as big as Good Technology in with the rest of its ties and platforms. Chen admits that finding synergy will be a priority.
Good CEO says her company will be ideal for Blackberry’s Internet of Things (IoT) plans
“Our combined product platform will be the industry’s broadest and deepest and extend beyond EMM and into the IoT world.” agrees Chen.
Blackberry’s share value came up by around 6 percent after the announcement.