BlackBerry has sold its Cylance endpoint security products to Arctic Wolf for $160 million, marking a significant shift in the Canadian company’s strategy. Once hailed as a cornerstone of BlackBerry’s pivot into cybersecurity and the Internet of Things (IoT), the Cylance acquisition in 2018 cost the company $1.4 billion but failed to deliver the expected growth.
Under the terms of the deal, Arctic Wolf will pay $80 million upfront, with an additional $40 million a year later, plus 5.5 million shares. Arctic Wolf plans to integrate Cylance’s AI-powered endpoint security tools into its Aurora platform, enhancing its extended detection and response (XDR) capabilities.
BlackBerry, which will remain a reseller of Cylance products under the new arrangement, described the deal as beneficial for all stakeholders. While investors reacted positively, pushing BlackBerry shares up nearly 15 percent, the sale raises questions about the company’s broader cybersecurity ambitions. Arctic Wolf CEO Nick Schneider sees this acquisition as an opportunity to simplify endpoint security operations and deliver better outcomes for customers.
