Arctic Wolf has announced the acquisition of BlackBerry’s Cylance endpoint security assets for $160 million. The deal, which is expected to close in BlackBerry’s fourth fiscal quarter, will see Arctic Wolf receive $80 million in cash at closing and an additional $40 million a year later, along with 5.5 million common shares of Arctic Wolf. The acquisition marks a strategic move by Arctic Wolf to strengthen its position in the cybersecurity space and expand its endpoint security capabilities.
The integration of Cylance’s AI-driven endpoint security into Arctic Wolf’s open-XDR security platform, Aurora, is expected to significantly enhance the firm’s endpoint-to-edge coverage. Arctic Wolf’s CEO, Nick Schneider, emphasized that this move addresses the increasing demand for a unified and effective security solution. By leveraging Cylance’s advanced technology, Arctic Wolf aims to eliminate alert fatigue, reduce total risk exposure, and deliver better outcomes for customers, all within a single operational platform.
Cylance’s endpoint security technology is known for its ability to prevent up to 98% of attacks before they occur. Arctic Wolf plans to integrate these capabilities into its Aurora platform, offering customers a frictionless operational experience designed to tackle the most advanced cybersecurity threats. Dan Schiappa, Arctic Wolf’s Chief Product and Services Officer, noted that the addition of endpoint security would make their platform a world-class solution, capable of competing with the best in the industry while also supporting a range of other endpoint solutions.
For BlackBerry, the sale of Cylance’s assets will not impact its Secure Communications portfolio, which includes BlackBerry UEM, BlackBerry AtHoc, and BlackBerry SecuSUITE. The company will continue to focus on these core areas while also acting as a reseller of the Cylance business. BlackBerry’s CEO, John Giamatteo, highlighted that this transaction is beneficial for all stakeholders, providing continuity of service to customers and strengthening Arctic Wolf’s cybersecurity offerings while also benefiting BlackBerry’s government clients and its position as a shareholder in Arctic Wolf.
