Why BlackBerry spending $425 mn cash to acquire Good Technology

Good Technology
BlackBerry today announced its deal to acquire Good Technology for $425 million.

The all-cash deal will assist Ontario-based BlackBerry to offer a unified, secure mobility platform with applications for any mobile device on any operating system.

Interestingly, BlackBerry expects to realize approximately $160 million in revenue from Good Technology in the first year.

Founded in 1996 in Silicon Valley, Good Technology is a privately held company, funded by investment firms and other private investors.

Good Technology recently said that Gartner has recognized the company’s security solutions in its 2015 Critical Capabilities for High-Security Mobility Management report. Good Technology received the highest product scores in BYO (3.73 of 5) and Nonemployee (3.77 of 5) as well as Shared Data (3.56 of 5) and High-Security Government Grade (3.51 of 5). Good also scored impressive marks in High-Security Commercial (3.37 of 5) and Shared Devices (3.26 of 5).

Sunnyvale, Calif.-based Good Technology will bring technologies, including secure applications and containerization that protects end user privacy.

BlackBerry aims to expand its ability to offer cross-platform EMM solutions to boost presence among companies that opt for bring-your-own-device (BYOD); corporate owned, personally enabled (COPE); as well as environments with multiple user interfaces and operating systems.

Good has 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 increased choice to users, said BlackBerry.

Good Dynamics platform, which provides app-level encryption, data loss prevention and communication between applications, has more than 2,000 independent software vendor and custom applications built today.

“By acquiring Good Technology, BlackBerry will better solve one of the biggest struggles for CIOs today, especially those in regulated industries: securely managing devices across any platform,” said John Chen, executive chairman and CEO of BlackBerry.

Good Technology serves more than 6,200 organizations, including more than half of the Fortune 100, all of the Fortune 100 commercial banks, aerospace and defense firms, and leaders across healthcare, manufacturing and retail.

BlackBerry works with all G7 governments, 16 of the G20 governments, 10 out of 10 of the largest global banks and law firms, and the top five largest managed healthcare, investment services, and oil and gas companies.

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