BlackBerry to sell patents related to mobile devices, messaging
- By Reuters -
- Jan 31, 2022
BlackBerry said Monday it is selling almost all of its legacy patents related to mobile devices, messaging, and wireless networking to a special purpose company, Catapult IP Innovations, for $600 million.
BlackBerry stock was down over 5% to $7.46 in premarket trading but was up 1.4% to $7.98 early in the regular session. Shares have fallen 15.7% year to date, while the S&P 500 is down 7% in the same period.
BlackBerry, a Canadian cybersecurity company, will receive $450 million in cash and $150 million in a promissory note at the closing of the transaction, which could take up to seven months. The acquisition requires approval from antitrust regulators in both Canada and the U.S., the company said.
Delaware-based Catapult, which was formed solely to acquire BlackBerry’s patent assets, has received a conditional commitment of $400 million from Toronto-based capital provider Third Eye Capital.
BlackBerry reported revenue of $183 million in the third quarter, much lower than $218 million in the same period of the previous year but above analyst expectations of $170.9 million. Revenue from the cybersecurity division was $128 million.
Related: Farewell, BlackBerry smartphone!
The company is set to report its fourth-quarter earnings on March 31, according to FactSet.