Arctic Wolf Purchasing Cylance From BlackBerry For $160 Million

Arctic Wolf is acquiring Cylance from BlackBerry for $160 million, a steep drop from when BlackBerry purchased it in 2018 for $1.4 billion.

Arctic Wolf is purchasing BlackBerry’s Cylance endpoint security assets. The proposed acquisition is subject to customary closing conditions and should close in BlackBerry’s fourth fiscal quarter, which ends on Feb. 28

Nick Schneider, Arctic Wolf’s CEO, said the acquisition will “strongly” benefit his company’s partners.

“Cylance’s trailblazing suite of endpoint security capabilities and enhanced AI functionality will bolster Arctic Wolf’s position as a market-leading platform provider, offering coverage from the endpoint to the edge,” he said. “As we enter the endpoint space, we will remain committed to being an open platform and supporting the 15-plus endpoint solutions we do today to ensure our customers and partners have optionality to use whatever endpoint tool best suits their needs.”

Arctic Wolf's Nick Schneider

Arctic Wolf With Cylance Will Rival ‘Best In The Industry’

By integrating Cylance into its portfolio, Arctic Wolf will provide a “world-class endpoint protection solution that rivals the best in the industry,” Schneider said.

“Cylance was the pioneering force in bringing AI into the world of cybersecurity, and when their technology is combined with Arctic Wolf’s Alpha AI, and then applied to the more than 7 trillion security events our platform processes each week, we will unlock an immense volume of insights that will enable us to better detect and respond to threats faster than ever,” he said.

Related:Arctic Wolf Valuation Could Reach $4 Billion with New Potential Funding Round

The competitive advantage Arctic Wolf and its partners gain from this acquisition is “immense,” Schneider said.

“Cylance has a long history of recognition as a market leader, known for stopping 98% of attacks before they begin and trusted by many of the world’s leading organizations for its AI-driven prevention and detection,” he said. “Recently, Cylance was named 2024 Customers’ Choice for endpoint protection platforms (EPP) by Gartner Peer Insights for the second consecutive year.”

Arctic Wolf Gaining Hundreds of New Channel Partners

Upon closing, the acquisition will introduce hundreds of new channel partners to Arctic Wolf and expand the global availability of Arctic Wolf’s Aurora platform into new markets in EMEA, APAC and LATAM, Schneider said.  

The acquisition won’t impact BlackBerry’s secure communications portfolio of businesses. That includes BlackBerry UEM, BlackBerry AtHoc and BlackBerry SecuSuite. The secure communications business will remain an integral part of the BlackBerry portfolio. 
“I am incredibly excited to partner with Arctic Wolf through this agreement,” said John Giamatteo, BlackBerry’s CEO. “We see this transaction as a win-win for our shareholders and all other stakeholders. Our customers will realize the benefits of continuity of service and the expertise that a global cybersecurity leader like 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.”

Related:Unified BlackBerry Partner Program Includes Cylance