(Bloomberg) -- BlackBerry Ltd. will no longer spin off its its internet-of-things business, a reversal from a previously announced turnaround plan.

BlackBerry will reorganize to keep that business in house alongside its cybersecurity unit, the Waterloo, Canada-based company said in a statement Monday. The decision was made “with a view to each division operating independently and on a profitable and cashflow-positive basis going forward,” it said.

The shares fell 3.6% in premarket trading in New York.

The software company also appointed John Giamatteo, who has been president of its cybersecurity business since 2021, as chief executive officer. He was previously president and chief revenue officer of McAfee Corp., and has had stints at other technology companies. BlackBerry is in the “final stages” of selecting a consulting firm to help in the reorganization, it said.

BlackBerry has struggled to find its footing in a post-smartphone life as revenue growth has largely declined in recent years. In 2016, the company announced its pivot from developing smartphone hardware to outsourcing that to a Chinese firm, and by 2020, BlackBerry exited that market altogether to focus on its software segments.In August, Bloomberg reported that private equity firm Veritas Capital was considering a takeover offer. 

Shortly after the spin off plan was announced, Bloomberg Intelligence analyst John Butler said the remaining business may be lower growth. That’s particularly as high-margin licensing fees are set to decline after the sale of patents, he added.

(Updates with shares in third paragraph. A previous version of this story corrected the spelling of the CEO’s name.)

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