Blackberry mulls company breakup
Private equity firm Veritas Capital is considering a potential offer for BlackBerry Ltd., according to people familiar with the matter, after the once iconic Canadian technology company announced a strategic review earlier in the year.
Veritas is interested in acquiring all of the company, the people said, asking not to be identified because the matter is private. Talks are early and Veritas could still change its mind on an offer, while other suitors are also interested in the whole or parts of BlackBerry, the people said.
Shares in BlackBerry surged almost 19 per cent, the biggest jump in over two years, and were up 10 per cent at 11:56 am in Toronto, valuing it at US$2.8 billion.
Representatives for Veritas and BlackBerry didn’t immediately respond to requests for comment.
In May, the company announced that it would review its portfolio of businesses and consider strategic alternatives to boost value for shareholders. It said alternatives include a possible separation of some businesses.
BlackBerry has a unit that makes cybersecurity software that has faced stiff competition, according to Bloomberg Intelligence, as well as an “Internet-of-Things” products that are higher growth and used by the auto industry.
New York-based Veritas acquired data energy firm Wood Mackenzie earlier this year and is also participating in the pending buyout of Syneos Health Inc.
With assistance from Dinesh Nair and Kamaron Leach.