Private Equity Firm May Acquire BlackBerry
(Reuters) – Private equity firm Veritas Capital has made an offer to buy BlackBerry Ltd, according to a person familiar with the matter, months after the Canadian technology company began a strategic review.
Shares of US-listed BlackBerry, which had previously risen about 17% on the news, closed at $5.23, giving the company a market value of $3.1 billion.
The details of the offer could not be ascertained. Veritas and Blackberry did not immediately respond to Reuters requests for comment.
Veritas has made an offer for the entire company, the source said, adding that BlackBerry is also in talks with other potential buyers.
BlackBerry announced in May that it is considering strategic options for its business portfolio, which could include the possible separation of one or more companies.
Founded in 1984, the company currently manufactures software for cars and cyber security. It became popular thanks to its ubiquitous business smartphones, carried by executives, politicians and legions of fans in the early 2000s.
It pulled the plug on its smartphone business last year and has since been trying to sell its old patents related to mobile devices.
In May, BlackBerry said it was moving forward with a previously announced sale of its mobile device patents to Malikie Innovations Limited for $900 million. An earlier deal to sell those patents to Catapult IP Innovations Inc. for $600 million fell through because it took longer than usual to close.
In 2016, BlackBerry said it would no longer manufacture its classic smartphones. Since then, the company has been trying to reinvent itself as a top-notch software provider.
BlackBerry has two main businesses, one focused on cybersecurity software, while the other makes “Internet of Things” products. Veritas Capital is a technology investor that primarily buys and invests in companies that provide government-oriented tools and services.
Morgan Stanley and Perella Weinberg Partners acted as BlackBerry’s financial advisors on the strategic review.
Bloomberg News reported on the talks between Veritas and BlackBerry earlier on Friday.
(Additional reporting by Chavi Mehta in Bengaluru; Editing by Shweta Agarwal and Grant McCool)
