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The company is backtracking on plans to split its IoT and cybersecurity arms into separate companies
December 12, 2023
BlackBerry is reneging on its plan to divide its IoT and cybersecurity arms into two different companies.
The initial plan, announced in October, suggested separating its 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.
Now, a company announcement said BlackBerry will instead separate the IoT and cybersecurity business units to become “fully standalone” BlackBerry divisions.
The announcement follows the completion of BlackBerry’s Project Imperium, a review into the company’s operations to increase shareholder value and sustainable growth.
While initially the review recommended making IoT and cybersecurity separate entities, a reassessment has seen a reversal of the decision.
“The process will include the separation and streamlining of BlackBerry’s centralized corporate functions into business-unit specific teams,” a company statement said, “with a view to each division operating independently and on a profitable and cash flow-positive basis going forward.”
BlackBerry also said it will no longer pursue an IPO for its IoT business unit.
“The board, with input from its advisors, believes that a full separation of BlackBerry’s IoT and Cybersecurity businesses will open up a number of strategic alternatives that can unlock shareholder value,” said Dick Lynch, BlackBerry’s board chair.
“Management is focused on moving quickly to complete this reorganization that will further enhance the focus of both businesses on their respective markets as well as their capacity for fast, flexible decision making.”
The company said it’s currently selecting a consulting firm to assist in the separation process.
Assistant Editor, IoT World Today
Scarlett Evans is the assistant editor for IoT World Today, with a particular focus on robotics and smart city technologies. Scarlett has previous experience in minerals and resources with Mine Australia, Mine Technology and Power Technology. She joined Informa in April 2022.
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