BlackBerry to acquire software security provider Good Technology for $425 million

Bengaluru: Canadian smartphone maker BlackBerry Ltd said it would acquire software security provider Good Technology for $425 million in cash.

BlackBerry said it expects to realise about $160 million in revenue from the acquisition in the first year once the deal closes.

The Waterloo, Ontario-based company, whose smartphone market share has dwindled, is attempting to morph into a more software-focused entity.

The company, which has acquired a string of niche software-focused companies in the last 18 months, is now set on building out a bigger sales team, while also tapping the sales staff of telecom carriers and other partners to market its array of security-focused products.

Earlier this year, BlackBerry Chief Executive John Chen said he saw a part of the company's targeted software revenue growth in the current fiscal year coming from acquisitions of companies that will allow it to sell more value-added services.

(With inputs from Reuters)