BlackBerry has increased its bets on artificial intelligence and cybersecurity Friday with the purchase of $ 1.4 billion (about 10,063 crores) from Cylance, the machine learning specialists of California.
The Canadian technology company, which dominated the smartphone market a decade ago, turned to selling software to manage mobile devices, as well as emerging areas such as autonomous cars.
Owner Cylance uses machine learning to avoid security breaches before they happen. Its applications seek to block malicious programs or infiltration attempts instead of responding to a violation.
According to a report by Business Insider, Cylance, which has more than 3,500 active business customers, was considering applying for an IPO.
“Cylance’s leadership in artificial intelligence and cybersecurity will immediately complement our entire portfolio,” said John Chen, CEO of BlackBerry, in a statement.
Californian President Stuart McClure said he could take advantage of Blackberry’s power in mobile communications and security to adapt its artificial intelligence technology.
In addition to the $ 1.4 billion that BlackBerry will pay, the deal also includes consideration of unused incentives for Cylance employees, BlackBerry said.
Cylance will continue to operate as an independent business unit once the deal is completed, BlackBerry said. The agreement is expected to be concluded in February 2019.
Blackberry shares traded in the United States increased slightly in light pre-market transactions.