BlackBerry Limited (NASDAQ: BBRY TSX: BB), a international leader in safe mobile communications, right now announced that it has entered into a definitive agreement to acquire Good Technology for $425 million in money. Good is component of the mobile device management market place (MDM), which is supposed to help businesses safe mobile phones at a time when workers are bringing their personal devices to work, a trend that has been labeled BYOD. In a lengthy statement emailed to TechCrunch, a Very good spokesperson did not deny the layoff rumors, but neither did she respond directly to the query.
According to a source with a great deal of information of the enterprise mobile industry, Great was strong between 2007 and 2010, particularly in economic markets, and had good results going up against BlackBerry when businesses began moving to iOS, Android or Windows phones. BlackBerry had inked an agreement to acquire California-based Good Technology in a $425 million deal.
BlackBerry’s management expects the Very good acquisition to be accretive to both EPS and FCF inside a year of closing and is targeting $160 million in year-one GAAP income from Excellent. BlackBerry expects it to take a couple of years for the two platforms to be completely converged into one. As it turned out, the bump in shares was temporary, and the stock closed down 20 cents at $9.66 on the TSX.
Smithen expects the Excellent deal to be quite accretive” because BBRY is primarily acquiring a buyer list with minimal opex” following the very first handful of quarters of integration. New product introductions and changes to mobile devices, operating systems, applications, safety threats, sector standards and the general technologies landscape result in evolving customer requirements for mobile options. This acquisition may let VMware or AirWatch to sell its technologies in mixture with other technologies in the type of new offerings to customers, which could drive some enterprises to seek out VMware as a prospective vendor for the merchandise we provide.
Our capability to compete properly could also be adversely affected by consolidation among our consumers, consolidation amongst our competitors, entrance of new competitors, fast change in technology and market demands for new solutions, all of which are elements largely outside of our handle. On its face, Good Technology, a firm previously recognized for sniping at and competing with BlackBerry, seems like a good fit. Technologies could bring us a a lot less difficult communication by the internet or by the cellulars.