BlackBerry Completes Good Acquisition

After having a rough 2015 so far, BlackBerry Ltd. (NASDAQ: BBRY) finally is building some positive momentum. Monday morning before the markets opened, BlackBerry announced the completion of its acquisition of Good Technology, and investors appeared to respond positively.

BlackBerry will integrate Good’s software solutions and services with its own software suites to offer what it believes is the industry’s most complete end-to-end solution that secures the entire mobile enterprise, across all platforms and applications while protecting personal privacy.

BlackBerry anticipates this acquisition to be accretive to earnings and cash flow within the first year after closing. The company also expects to realize roughly $160 million in revenue from Good in the first year, including the impact of an expected write-down of certain deferred revenue of Good.

John Chen, executive chairman and CEO of BlackBerry, said:

The Good and BlackBerry solutions are very complementary. Combined, BlackBerry solves one of the biggest challenges for CIOs – to securely manage all types of deployment models for any device operating system platform, whether on-premise or in the cloud. We are creating a higher-value solution with the capability to extend across enterprise mobility management, collaboration and application enablement in order to provide customers with the best and most secure products, services and support to meet their enterprise mobility objectives.

Stacy Crook, Research Director, Enterprise Mobility at IDC, added:

BlackBerry’s completion of the Good acquisition brings two leading companies in the mobile security space together to offer a secure cross-platform EMM solution. Good brings additional value to the BlackBerry platform by offering strong application containerization on iOS and Android, and will provide solutions to containerize custom and third-party applications.

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So far in 2015, BlackBerry has greatly underperformed the market, with the stock down nearly 34% year to date. However, over the past 52 weeks the stock is down 30%.

Shares of BlackBerry up 0.9% at $7.36 early Monday, with a consensus analyst price target of $7.17 and a 52-week trading range of $5.96 to $12.63.