Last Friday, BlackBerry announced it was purchasing Good Technology – a mobile security company.
The deal was sealed with $425 million (£280 million) heading Good’s way. The Good Dynamics platform provides encryption, advanced data loss prevention and secure communication between applications.
But BlackBerry is already good at that, isn’t it? It is one of the safest, if not the safest smartphone out there, so what good can Good do (pun definitely intended)?
Good Technologies helps corporate clients to manage smartphones running on different operating systems. In particular, around 64 percent of active Good devices run iOS.
“The acquisition of Good is aligned with BlackBerry’s strategy to offer customers the most complete, end-to-end solution that secures the entire mobile enterprise, across all platforms,” reads the company’s official statement.
The company hopes that it will be able to “provide customers with increased choice for securely deploying any leading operating system in their organisation.”
“By acquiring Good, BlackBerry will better solve one of the biggest struggles for CIOs today, especially those in regulated industries: securely managing devices across any platform,” said BlackBerry CEO John Chen. “By providing even stronger cross-platform capabilities our customers will not have to compromise on their choice of operating systems, deployment models or any level of privacy and security.”
BlackBerry expects the acquisition to be completed “toward the end of the company’s 2016 fiscal third quarter,” subject to usual approval.
The company anticipates the acquisition to be accretive to earnings and cash flow within the first year after closing. BlackBerry also expects to realize approximately $160 million (£104m) in GAAP revenue from Good in the first year.