Arctic Wolf and BlackBerry Limited have announced an agreement for Arctic Wolf to acquire BlackBerry’s Cylance endpoint security assets. Cylance is known for its artificial intelligence (AI) driven approach to helping organisations manage cybersecurity threats.
The transaction, valued at £126 million ($160 million) in cash and approximately 5.5 million Arctic Wolf common shares, will transfer Cylance’s assets to Arctic Wolf. Adjustments to the purchase price are expected, with BlackBerry set to receive £62.9 million ($80 million) in cash at closing and £31.4 million ($40 million) a year later. The deal is subject to regulatory conditions and is expected to be finalised in BlackBerry’s fourth fiscal quarter.
President and CEO at Arctic Wolf, Nick Schneider, said security has an operations and effectiveness problem and endpoint solutions alone have failed to live up to the outcomes they have promised for years.
“By incorporating Cylance’s endpoint security capabilities into our open-XDR Aurora platform, we will be addressing a rampant need for a truly unified, effective security operations that deliver better outcomes for users. We believe we will be able to rapidly eliminate alert fatigue, reduce total risk exposure, and help users unlock further value with our warranty and insurability programmes,” said Schneider.
Arctic Wolf plans to integrate Cylance’s capabilities into its Aurora platform, an open XDR (Extended Detection and Response) system designed to support unified security operations. The integration reflects a broader industry trend toward consolidating cybersecurity tools into single platforms to streamline operations and manage risks more effectively.
CEO at BlackBerry, John Giamatteo, said the company sees this transaction as a win-win for shareholders and all other stakeholders and its users will realise the benefits of continuity of service and the expertise that Arctic Wolf provides.
“Arctic Wolf benefits by adding Cylance’s endpoint security solutions to its native platform. Finally, as Arctic Wolf leverages its scale to build upon and grow the Cylance business, BlackBerry will benefit as a reseller of the portfolio to our large government customers and as a shareholder of the company,” said Giamatteo.
Integration and Future Focus
The addition of Cylance is expected to enhance Arctic Wolf’s ability to deliver a more comprehensive approach to security operations. This includes addressing challenges like alert fatigue and improving incident response capabilities.
The transaction also positions Arctic Wolf to expand its offerings in the endpoint security space, while BlackBerry plans to continue its focus on other core areas.
Advisory support for the transaction was provided by Perella Weinberg Partners LP and Morrison Foerster LLP for BlackBerry, and Cooley LLP for Arctic Wolf.
