Blackberry made a surprise announcement to buy their former competitor Good Technology, as part of extending their reach on mobile platforms that are used by Apple devices. The mobile device management company from Sunnyvale, California will be in the possession of Blackberry.
The Blackberry will be paying $425 million to acquire Good Technology. It is expected that the deal will be completed within the third quarter of the year 2016.
This shows that Blackberry who is experiencing a low selling phase for its handsets in the worldwide market is shifting their attention to expanding the mobile security platforms.
The majority of the activations of product from Good Technology are done using Apple IOS devices and the remaining activations are using Windows and Android devices.
The Blackberry will be focusing on government departments and enterprises that are looking for secure mobile solutions. Though Blackberry was the undisputed leader in the mobile phone market worldwide, the introduction of Apple and Android mobiles quickly made them to have a lower market share.
Blackberry COO Marty Beard through the company blog stated that, this move to buy Good Technology was a logical extension of the present strategy of the company to invade into enterprise mobility over different platforms.
Beard also said that Blackberry and Good Technology shares a common heritage in mobile security and the strengths of each company compliment the other very well.
Blackberry CEO, John Chen, during the press conference, said that, the two companies are expected to go well together as the strength of Good Technology lies in iOS devices, which is not a forte of Blackberry.
Chen also said that Blackberry wants to shift the business to subscription and the strong position of Good Technology in the subscription business will make the transition easy for Blackberry.
Blackberry has been on acquisition strategy for quite some time now. Last year, they acquired Secusmart, a German voice encryption firm. In April 2015, they again bought WatchDox, a file security company.
On May 2014, Good Technology filed for $100 million IPO and the SI showed a debt of about $24 million. The smart move made by Blackberry will allow it go easily into cross-platforms such as iOS and Android.
Both the companies were experiencing some tough time in the market and together they will be able to perform in a better way in mobile management.
It appears that the decision will do well for both the companies. Good Technology will be saved from the risk of going for IPO with an unreceptive market and Blackberry will be able to achieve expansion in to security platform without investing much money.