Arctic Wolf said Monday it will enhance its security operations platform with the planned acquisition of the “trailblazing” endpoint security tool Cylance from its owner, BlackBerry.
The acquisition is pegged at $160 million in cash, in addition to shares in privately held Arctic Wolf, and is focused on the Cylance endpoint security “assets,” Arctic Wolf said.
[Related: Arctic Wolf CEO On Why ‘Platformization’ In Security Is ‘Definitely Happening’]
BlackBerry paid $1.4 billion to acquire fast-growing Cylance in 2018, at a time when the company was an endpoint security up-and-comer rivaling established players in the market while eyeing an initial public offering.
Cylance went on to become a centerpiece of BlackBerry’s reinvention of itself as a provider of cybersecurity offerings, following the vendor’s move away from the mobile device market.
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In a news release Monday, Arctic Wolf called Cylance “the pioneer of AI-based endpoint protection” that is “trusted by thousands of organizations” globally.
Arctic Wolf expects to leverage the Cylance technology to “bolster” its security operations platform, which already includes MDR (managed detection and response) combined with capabilities such as vulnerability management, managed security awareness and cloud security.
The platform will be significantly enhanced “with the addition of Cylance’s trailblazing suite of endpoint security capabilities and enhanced AI functionality,” Arctic Wolf said in the release.
Along with $160 million in cash, the agreement with BlackBerry includes 5.5 million common shares of Arctic Wolf, which has been valued at $4.3 billion by its investors and has considered pursuing an IPO.
The deal is expected to close in BlackBerry’s fourth fiscal quarter, which concludes at the end of February 2025.