October 9, 2023
BlackBerry says it will separate its Internet of Things (IoT) and cybersecurity business units, with a target to pursue an initial public offering (IPO) for its IoT arm in the first half of the next fiscal year.
According to a company statement, the decision is motivated by the need to “drive enhanced shareholder value.”
“The board and management believe that separating our principal businesses will improve our ability to create value for all our stakeholders,” said John Chen, BlackBerry’s CEO “Both the IoT and cyber businesses have leading technology and talent and address large and growing market opportunities.
“This new proposed structure will further increase both their operational agility and ability to focus on delivering exceptional solutions to their customers.”
The decision follows a months-long company strategic review alongside its advisors Morgan Stanley and Perella Weinberg Partners.
Further details on the timeline of the planned separation have not been disclosed.
According to BlackBerry’s financial earnings report, its IoT and cybersecurity business units garnered $49 million and $79 million, respectively, of the company’s $132 million second-quarter fiscal 2024 revenue.
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