BlackBerry ( BBRY ) is bucking the market’s downward slide right after it announced it will get Good Technology for $425 million in money. We reached out to ask her how it felt to see Very good go for an IPO so several years right after she helped launch it, but she could not be reached for comment. Good Technology, primarily based in Sunnyvale, California, builds applications to assist workers function securely from their private phones. The acquisition removes a rival that had taken some of BlackBerry’s consumers as far more workers switched from employer-offered BlackBerrys to their personal iPhones and Android devices.
BlackBerry will bring together Very good Technology’s safe e-mailing apps with its experience in assisting organizations handle and secure thousands of connected tablets and phones, Chief Executive Officer John Chen mentioned on a conference get in touch with. Good Technology (Pending: GDTC ) is a leader in mobile safety technologies, data services, and applications.
That could potentially have impacted the company’s valuation, mentioned Matt Larson, a technology patents litigation analyst with Bloomberg Intelligence. Excellent Technology’s revenue from intellectual property represented only about $25 million of the $200 million yearly income, Chen stated. BlackBerry could be in a better position to monetize Great Technology’s patents by bundling them into its existing licensing deals, Larson said.
BlackBerry CEO John Chen announced that his firm will acquire mobile device management (MDM) vendor Good Technology for $425 million in an all-money deal set to close in November. The 1 glimmer of excellent news was that application and technology licensing revenues increased from $74 million to $137 million. Like BlackBerry, Excellent is most heavily represented in government, finance, and other regulated industries. BES12 took benefit of the Ubitexx acquisition in Might 2011 with improved support for iOS and Android devices.
Excellent is a longtime player in the MDM space and has produced the Leader’s Quadrant in Gartner’s Magic Quadrant for Mobile Device Management (renamed Enterprise Mobility Management (EMM) in 2014) each year given that 2011. BlackBerry will advantage from the acquisition of Good simply because it will not have to function hard to convince CIOs it can manage much more than its own devices.