- BlackBerry is in talks to buy cybersecurity startup Cylance for as much as $1.5 billion, sources told Business Insider.
- A deal could be announced as soon as next week.
A deal could be announced as soon as next week, the sources said, cautioning that it could still fall apart. Sources believe the price of the deal could be as much as $1.5 billion, though the exact financial terms could not be learned.
Irvine, California-based Cylance develops AI-based products to protect companies from cyberattacks. It’s raised $327 million in venture capital funding, according to PitchBook, and was recently considering filing for an IPO, several sources told Business Insider.
The six-year old startup competes with Crowdstrike, which is planning an initial public offering valuing the company at more than $3 billion according to a recent Reuters report, in the fast-growing market for cybersecurity services.
BlackBerry has been expanding its security offerings, as it has shifted from selling mobile phone hardware to providing business customers with enterprise software and services.
Cylance brought in $130 million in revenue for fiscal 2018, according to a press release from June. That represented 90% year-over-year growth. Cylance also lays claim to 4,000 customers, according to the release.
BlackBerry declined to comment. Cylance did not return a request for comment.
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