By: Raziq K
On September 4th, 2015, the tecnology company Blackberry went shopping again, and decided to buy their former rival Good Technology for $425 million in US cash. This deal was meant to expand its reach on other mobile platforms, especially those used by Apple devices.
This was a deal made by Blackberry in the hopes of once again reaching the top. So they are expanding its mobile enterprise security platform to hopefully gain back its worldwide handheld market share. According to techcrunch.com in September, 2009 BlackBerry led US mobile market share with more than 42 percent. In the most recent report from July, it had plunged to 1.5 percent. That is nearly a 40% decline in the past 6 years. Clearly, it’s not going to be a player in the handset market.
What is Good Technology? Good Technology is a mobile security provider, and they make products that manage and secure devices in a business area. Their main focus is to secure apps and data on mobile devices.
Why would Blackberry want to buy Good? This deal might help Blackberry win new customers for its services business, a priority as it shifts focus to device management software for enterprise customers.
According to indianexpress.com, BlackBerry said it expects to realize about $160 million in revenue from the acquisition in the first year after the deal closes, expected by late November. The CEO of Blackberry promised that blackberry would overall stay cash flow positive.
“Good has expertise in multi-OS management with 64 percent of activations from iOS devices, followed by a broad Android and Windows customer base. This experience combined with BlackBerry’s strength in BlackBerry 10 and Android management – including Samsung KNOX-enabled devices – will provide customers with increased choice for securely deploying any leading operating system in their organization. The proven Good Dynamics platform provides app-level encryption, advanced data loss prevention and secure communication between applications. The platform has more than 2,000 independent software vendor and custom applications built today” (www1.good.com)
“By acquiring Good, BlackBerry will better solve one of the biggest struggles for CIOs today, especially those in regulated industries: securely managing devices across any platform,” BlackBerry CEO John Chen said in a news release. Let’s just hope he is right, and that Blackberry didn’t just waste $425 million.