Why BlackBerry Stock Soared 16% Today
Shares of one-time smartphone leader BlackBerry (NYSE: BB) stock soared 16% through 11:40 a.m. ET Monday morning after the company announced it will sell its Cylance endpoint security assets to private cybersecurity operator Arctic Wolf.
With its smartphone business out of the picture, BlackBerry has morphed into a specialist in software for cyber and Internet of Things (IoT) applications. It's the former business that interests Arctic Wolf, which will pay effectively $160 million to acquire it.
Arctic Wolf will trade 5.5 million shares of its own privately held stock (presumably worth about $40 million), and also pay $80 million in cash at closing, to acquire Cylance. Approximately one year after closing, Arctic Wolf will make a final payment of $40 million.
Source Fool.com
