BlackBerry is in talks to acquire cybersecurity company Cylance for $1.5 billion

  • BlackBerry is in talks to buy the cybersecurity startup Cylance for as much as $1.5 billion, sources told Business Insider.
  • A deal could be announced as soon as next week.

BlackBerry is in discussions to acquire the cybersecurity startup Cylance, according to multiple sources familiar with the matter.

A deal could be announced as soon as next week, the sources said, though they cautioned 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.

Cylance, based in Irvine, California, develops artificial-intelligence-based products to protect companies from cyberattacks. It has raised $327 million in venture-capital funding, according to PitchBook, and was recently considering filing for an initial public offering, several sources told Business Insider.

The six-year-old startup competes with CrowdStrike — which is planning an IPO 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 enterprise software and services to business customers.

Cylance brought in more than $130 million in revenue for fiscal 2018, representing 90% year-over-year growth, a press release from June said. Cylance also has 4,000 customers, according to the release.

BlackBerry declined to comment. Cylance did not return a request for comment.

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