Arctic Wolf Networks and BlackBerry have officially announced a strategic agreement in which Arctic Wolf will acquire BlackBerry’s Cylance endpoint security assets. This acquisition marks a significant milestone in the cybersecurity industry, as it combines the innovative AI-based endpoint protection of Cylance with Arctic Wolf’s expertise in security operations, providing customers with a new level of simplicity, flexibility, and results.
The transaction entails BlackBerry selling its Cylance assets to Arctic Wolf for $160 million in cash, along with approximately 5.5 million common shares of Arctic Wolf. After adjustments, BlackBerry is set to receive $80 million in cash at closing and an additional $40 million one year post-closing. The deal is subject to standard closing conditions and is expected to be finalized in BlackBerry’s fourth fiscal quarter.
By integrating Cylance’s advanced endpoint security capabilities and AI functionalities, Arctic Wolf aims to solidify its position as a leading platform provider, offering comprehensive security coverage from endpoint to edge. This move comes at a time when many organizations are seeking to streamline their security operations by adopting integrated platforms that provide end-to-end protection.
Arctic Wolf’s President and CEO, Nick Schneider, emphasized the need for a unified and effective security solution that delivers tangible outcomes for customers. By incorporating Cylance’s technology into its open-XDR Aurora platform, Arctic Wolf intends to address common challenges such as alert fatigue and overall risk exposure, while also enhancing the value proposition for customers through warranty and insurability programs.
BlackBerry’s CEO, John Giamatteo, expressed enthusiasm about the partnership with Arctic Wolf, highlighting the benefits for both companies and their stakeholders. He underscored the value that Arctic Wolf brings to the table by enhancing its platform with Cylance’s endpoint security solutions, which will ultimately benefit customers and shareholders alike.
It is worth noting that this acquisition will not impact BlackBerry’s Secure Communications portfolio, which includes key offerings such as BlackBerry UEM, BlackBerry AtHoc, and BlackBerry SecuSUITE. These business units will continue to be integral parts of BlackBerry’s overall portfolio, ensuring continuity for customers and partners.
With the addition of Cylance’s renowned endpoint security solution, Arctic Wolf is set to expand its open XDR security platform, offering customers and partners access to a wide range of endpoint solutions. This comprehensive approach to risk reduction and security operations sets Arctic Wolf apart in the industry, positioning it as a valuable partner for organizations of all sizes and security postures.
Cylance’s track record of preventing 98% of attacks through AI-driven technology adds further value to Arctic Wolf’s security offerings, reinforcing its commitment to delivering effective security outcomes through a single, integrated platform. This approach aligns with the industry trend of unifying security tools and operations to better analyze and respond to threats, while ensuring consistent risk mitigation.
In conclusion, the Arctic Wolf-BlackBerry agreement represents a significant step towards redefining the modern security landscape for customers and partners. By combining their respective strengths in endpoint security and security operations, the two companies are poised to deliver innovative solutions that address the evolving cybersecurity challenges faced by organizations today.