The phone maker BlackBerry has raised its bets on artificial intelligence and cyber-security. The company has acquired a California-based machine-learning specialist known as Cylance. The deal has been finalised for $1.4 billion (roughly Rs. 10,063 crores).
Blackberry, the Canadian technology company which dominated the smartphone market a decade eaelier has shifted to selling software to manage mobile devices, as well as emerging sectors like autonomous cars.
Cylance will continue to operate as a separate business unit after the deal closes and this deal is expected to close by Feb 2019.
The acquired company Cylance uses machine learning to prevent security breaches before they occur. Its applications seek to block malware or infiltration attempts rather than react after a breach. Cylance claims to have over 3,500 active enterprise customers and had been considering filing for a stock market floatation.
“Cylance’s leadership in artificial intelligence and cyber-security will immediately complement our entire portfolio,” BlackBerry CEO John Chen stated.
The California-based company’s Chief Executive Stuart McClure, in turn, said it would be able to leverage Blackberry’s strength in mobile communications and security to adapt its AI technology.
Besides the $1.4 billion that BlackBerry will pay, the deal also includes the assumption of Cylance’s unvested employee incentives. US-listed shares of Blackberry were marginally up in light pre-market trading.