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BlackBerry to Sell Endpoint Security Assets to Arctic Wolf

BlackBerry to Sell Endpoint Security Assets to Arctic Wolf

Canadian security software and services company BlackBerry is set to sell its Cylance assets to Arctic Wolf under a definitive agreement with the artificial intelligence-powered security solutions provider.

Cylance, winner of Gartner Peer Insights 2024 Customers’ Choice for endpoint protection platforms, is powered by advanced generative AI to provide real-time threat detection and prevention capabilities. According to BlackBerry, the solution uses 20 percent CPU processing power while still delivering 25 percent higher malware detection than its competitors.

The deal, which will see BlackBerry receive $160 million in cash and about 5.5 million common shares of Arctic Wolf, is expected to close in the fourth quarter of BlackBerry’s fiscal year, subject to customer closing conditions. Once finalized, Arctic Wolf is expected to be a market-leading platform provider, offering solutions ranging from endpoints to the edge.

Growing Cyberthreats

BlackBerry’s sale of its endpoint security solution assets comes as the world sees an increase in malware attacks. In June, the Canadian firm’s latest Global Threat Intelligence Report disclosed a 40 percent per minute growth in the number of novel malware used in cyberattacks. According to the report, the United States remained the leading target among malicious actors, with 82 percent of attacks targeting U.S.-based entities.

Arctic Wolf CEO and President Nick Schneider emphasized how the deal could help address these current challenges.

“By incorporating Cylance’s endpoint security capabilities into our open-XDR Aurora platform, we will be addressing a rampant need for a truly unified, effective security operations that delivers better outcomes for customers,” he said.

“We believe we will be able to rapidly eliminate alert fatigue, reduce total risk exposure, and help customers unlock further value with our warranty and insurability programs.”

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