Blackberry buys Good Technology for $425m in cash

Smartphone maker Blackberry has entered into an agreement to acquire security specialist Good Technology for $425m in cash.

The Canadian company said it expected the deal, which is likely to complete towards the end of the 2016 fiscal third quarter, would be accretive to earnings and cash flow within the first year after closing and should realise around $160m in revenue in the first year.

It said the acquisition of California-headquartered Good Technology was in line with its strategy to offer customers the most complete, end-to-end solution that secures the entire mobile enterprise, across all platforms.

Good’s popular technology will integrate with BlackBerry’s enterprise portfolio and global network, creating a wider offering to protect mobile security and privacy for users of all mobile devices, expanding its presence with global enterprise and government customers

Chief executive officer and executive chairman John Chen said: "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.”

Blackberry said that Good Technology serves more than 6,200 organisations, including more than half of the Fortune 100, all of the Fortune 100 commercial banks, aerospace and defence firms, and leaders across healthcare, manufacturing and retail.

At 1322 BST, Blackberry shares were up 3.9% at $7.46 in early trade.