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Arctic Wolf Acquires Cylance from BlackBerry for $160 Million
Arctic Wolf has acquired Cylance, BlackBerry’s cybersecurity business, for $160 million. This deal represents a significant discount from the $1.4 billion BlackBerry paid to acquire the startup in 2018. Under the terms of the deal, BlackBerry will sell its Cylance assets to Arctic Wolf for $160 million in cash, with BlackBerry receiving ~$80 million at closing and the remainder a year later, along with approximately 5.5 million common shares in Arctic Wolf.
BlackBerry CEO John Giammatteo stated that the transaction is a win-win for shareholders and stakeholders. Customers will benefit from the continuity of service and expertise provided by Arctic Wolf, a global cybersecurity leader. Arctic Wolf will gain Cylance’s endpoint security solutions, while BlackBerry will benefit as a reseller of the portfolio to large government customers and as a shareholder of the company.
Cylance Struggles in the Cybersecurity Sector
Founded in 2015 by former McAfee and Intel executives Stuart McClure and Ryan Permeh, Cylance faced challenges in the cybersecurity sector. Despite integrating its technology with BlackBerry’s platforms, the company struggled to maintain market share. According to IDC, Cylance had only a 1.3% share of the endpoint security market in 2022. Giammatteo attributed Cylance’s difficulties to the market’s shift towards threat detection and response products, an area where Cylance lacked offerings.
Arctic Wolf’s Acquisition Strategy
Arctic Wolf’s acquisition of Cylance marks the sixth acquisition since its founding in 2012. The company’s Chief Product Officer, Dan Schiappa, praised Cylance’s unique approach to endpoint security and emphasized Arctic Wolf’s commitment to enhancing and expanding endpoint security solutions. This acquisition aligns with Arctic Wolf’s focus on providing innovative and comprehensive cybersecurity solutions to its customers.
