BlackBerry Ltd. has signed a deal to sell its Cylance security business to Arctic Wolf.
Cylance uses artificial intelligence to help users detect malware and prevent cyberattacks.
Under the deal, Arctic Wolf will pay US$160 million of cash, subject to certain adjustments, and approximately 5.5 million common shares of Arctic Wolf, which is a privately held security software and services company.
After allowing for the purchase price adjustments, the companies say BlackBerry will receive about US$80 million of cash at closing and about US$40 million of cash one year following the closing.
BlackBerry acquired Cylance in February 2019 in a US$1.4-billion deal.
The deal with Arctic Wolf is subject to customary closing conditions and is expected to close in BlackBerry’s fourth quarter.