Private Equity Firm Veritas Capital Makes Offer to Acquire BlackBerry

Private equity firm Veritas Capital has made an offer to acquire BlackBerry Ltd, according to a source familiar with the matter. This comes after months of strategic review by the Canadian technology company. The news caused BlackBerry’s U.S-listed shares to rise by about 17%, closing at $5.23 and giving the company a market capitalization of $3.1 billion.

The details of Veritas Capital’s offer have not been disclosed, and both Veritas and BlackBerry have not yet responded to requests for comment from Reuters. The source revealed that Veritas has made an offer for the entire company, but BlackBerry is also in talks with other potential buyers.

BlackBerry, founded in 1984, is currently involved in the production of software for cars and cybersecurity. The company gained popularity in the early 2000s for its business smartphones, which were widely used by executives, politicians, and fans. However, BlackBerry discontinued its smartphones business last year and has been focusing on selling its legacy patents related to mobile devices.

In May, BlackBerry announced its intention to sell the patents related to its mobile devices to Malikie Innovations Limited for up to $900 million. A previous deal to sell the patents to Catapult IP Innovations Inc for $600 million fell through due to delays in closing the transaction.

Since 2016, BlackBerry has shifted its focus to becoming a provider of high-end software. The company operates two primary businesses: one focused on cybersecurity software and the other on “Internet-of-Things” products.

Veritas Capital, a technology investor, primarily invests in companies that provide government-focused tools and services. The financial advisory firms Morgan Stanley and Perella Weinberg Partners are assisting BlackBerry in its strategic review.

Bloomberg News had earlier reported the talks between Veritas and BlackBerry.

What are BlackBerry’s current primary businesses and how have they shifted their focus since 2016

Private equity firm Veritas Capital has reportedly made an offer to acquire BlackBerry Ltd, according to a source familiar with the matter. This comes after several months of strategic review by the Canadian technology company. The news of the offer caused BlackBerry’s U.S-listed shares to increase by approximately 17%, closing at $5.23 and giving the company a market capitalization of $3.1 billion.

While the details of Veritas Capital’s offer have not yet been disclosed, both Veritas and BlackBerry have yet to respond to Reuters’ requests for comment. The source revealed that Veritas has made an offer for the entire company, but BlackBerry is also engaged in discussions with other potential buyers.

BlackBerry, which was founded in 1984, is currently involved in software production for cars and cybersecurity. The company rose to prominence in the early 2000s with its business smartphones, which were widely used by executives, politicians, and enthusiasts. However, BlackBerry discontinued its smartphone business last year and has since focused on selling its legacy patents related to mobile devices.

In May, BlackBerry announced its intention to sell the patents associated with its mobile devices to Malikie Innovations Limited for up to $900 million. A previous deal to sell the patents to Catapult IP Innovations Inc for $600 million fell through due to delays in closing the transaction.

Since 2016, BlackBerry has shifted its focus to becoming a provider of high-end software. The company currently operates two primary businesses: one focused on cybersecurity software and the other on “Internet-of-Things” products.

Veritas Capital, a technology investor, primarily invests in companies that provide government-focused tools and services. Financial advisory firms Morgan Stanley and Perella Weinberg Partners are assisting BlackBerry with its strategic review.

Bloomberg News had previously reported on the ongoing talks between Veritas and BlackBerry.