BlackBerry Ltd. agreed to buy Good Technology Corp., gaining new customers in mobile-device management while removing one of its competitors, for $425 million.
Good Technology, based in Sunnyvale, California, builds applications to help employees work securely from their personal phones. It counts all of the G7 governments and the world’s 10 largest banks and law firms among its 6,200 customers, BlackBerry said in a statement Friday.
The acquisition removes a rival that had taken some of BlackBerry’s clients as more workers switched from BlackBerrys their employers gave them to personal iPhone and Android devices.
BlackBerry will bring together Good Technology’s secure e- mailing apps with its expertise in helping companies track and secure thousands of connected tablets and phones, Chen said.
“BlackBerry and Good combined will raise the bar in the enterprise mobility market,” he said. “We are expecting significant operating expense synergies.”
BlackBerry expects to book around $160 million revenue from Good Technology in the first year, even after writing down some of the company’s deferred revenue, Chen said. The acquisition is expected to close later this year.
Earlier this month, a court ruled that Good Technology’s claims that MobileIron Inc. was infringing on some of its patents were invalid, potentially calling into question its ability to enforce its intellectual property, Bloomberg Intelligence analyst Matt Larson wrote in an Aug. 11 note.
BlackBerry rose 1.2 percent to C$9.97 at 10:13 a.m. in Toronto.