Arctic Wolf, a leading cybersecurity company, recently announced its acquisition of Cylance, an endpoint detection and response (EDR) vendor, from Blackberry Ltd. The deal, valued at $160 million in cash and approximately 5.5 million common shares of Arctic Wolf, marks the end of Blackberry’s ownership of Cylance, which it purchased in 2018 for $1.4 billion to bolster its enterprise security offerings.
According to a press release from Arctic Wolf, the acquisition of Cylance will enhance its EDR capabilities at a time when organizations are facing increasingly disruptive cyber threats. With ransomware groups and other threat actors adapting to bypass traditional security measures, the need for advanced EDR tools has never been greater. By integrating Cylance’s AI-powered technology into its Aurora platform, Arctic Wolf aims to provide customers with a comprehensive security solution that combines detection, response, and prevention capabilities.
Blackberry is set to receive $80 million in cash upon the closing of the deal, with an additional $40 million to be paid one year later. The transaction is expected to be finalized in Blackberry’s fourth fiscal quarter, pending regulatory approval.
In a statement to the press, Blackberry expressed satisfaction with the outcome of the sale, highlighting the benefits it will bring to the company’s profitability and strategic focus moving forward. By divesting Cylance, Blackberry aims to concentrate on its core growth areas while ensuring that its government customers continue to have access to cutting-edge cybersecurity solutions through Arctic Wolf.
Arctic Wolf’s chief product and services officer, Dan Schiappa, emphasized the significance of the acquisition in redefining how organizations address cyber risk. By incorporating Cylance’s technology into the Aurora platform, Arctic Wolf aims to empower customers with enhanced endpoint security capabilities that enable both threat detection and prevention.
Analyst John Grady noted that the sale of Cylance by Blackberry was not unexpected, given the challenges the EDR vendor faced in meeting performance expectations and achieving profitability. Despite Blackberry’s efforts to support the Cylance brand, the business ultimately did not deliver the anticipated results, leading to its sale at a significantly reduced price compared to the original acquisition cost.
Looking ahead, Arctic Wolf stands to benefit from the acquisition by expanding its market presence and offering customers a comprehensive security solution that includes endpoint protection. With a focus on the open XDR model, Arctic Wolf aims to provide customers with a flexible and vendor-agnostic approach to cybersecurity that aligns with modern threat detection and response strategies.
As the cybersecurity landscape continues to evolve, the acquisition of Cylance by Arctic Wolf represents a strategic move to strengthen the company’s position in the market and deliver enhanced security outcomes for organizations facing complex cyber threats. This acquisition underscores the ongoing importance of advanced EDR solutions in mitigating risks and safeguarding critical assets from malicious actors.