BlackBerry Shares Up 4% After News Of Deal To Buy Good Technology
BlackBerry Ltd. shares rose about 4% in premarket trade Friday, after the mobile communications company said it has agreed to buy Good Technology for $425 million in cash. The deal will allow BlackBerry to offer "a unified, secure mobility platform with applications for any mobile device on any operating system -- supported with security that has been certified by governments around the world embedded in every component of the mobility infrastructure," BlackBerry said in a statement. California-based Good Technology's products are used by banks and aerospace and defense companies, among others, said the statement. BlackBerry is expecting the deal to close in the third quarter of fiscal 2016 and to boost earnings and cash flow in the first year after closing. It expects to realize about $160 million in revenue in the first year. BlackBerry shares have fallen about 32% in the year so far, while the S&P 500 has fallen 5.2%.
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