BlackBerry Agrees on Acquisition by Canadian Fairfax Financial Consortium for $4.7 Billion (€3.5 Billion)

Canadian Fairfax Financial consortium has just announced it has agreed to purchase BlackBerry handset maker for $4.7 billion (€3.5 billion).

BlackBerry confirmed today it has signed a letter of intent agreement under which its shareholders would receive $9 in cash for each share of BlackBerry share they hold. Fairfax Financial already owns approximately 10 percent of BlackBerry's common shares and plans to contribute the shares of BlackBerry it currently holds into the transaction. “The Special Committee is seeking the best available outcome for the Company's constituents, including for shareholders. Importantly, the go-shop process provides an opportunity to determine if there are alternatives superior to the present proposal from the Fairfax consortium,” said Barbara Stymiest, Chair of BlackBerry's Board of Directors.

If the transaction is successful this could mean BlackBerry will go private. If both parties agree to these terms the deal could be signed by November 4. For the time being BlackBerry’s stock is currently halted and according to Wall Street it could begin trading again soon starting at $8.23. This could be a great move from BalckBerry, as the company has just announced the layoff of 4,500 employees and around $1 billion (€741 million) losses. The botched launch of BlackBerry Messenger (BBM) for iOS and Android that should have take place last weekend was probably the last major event the Canadian smartphone company held this year. We will keep an eye out for any additional info on this deal so stay tuned for more updates on the matter.

“We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees. We can deliver immediate value to shareholders, while we continue the execution of a long-term strategy in a private company with a focus on delivering superior and secure enterprise solutions to BlackBerry customers around the world,” concluded Prem Watsa, Chairman and CEO of Fairfax.

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Image credits to Blackberry

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