BlackBerry Goes Big in a New Territory With Latest Acquisition

By February 29, 2016News

According to Reuters, BlackBerry has acquired U.K.-based cyber security consultancy Encription, continuing to morph into a more software-focused entity amid its ongoing turnaround.

As the popularity of BlackBerry’s devices has decreased considerably, the smartphone industry pioneer is trying to focus more on security software and services. Hopefully, the massive potential it sees in the area is going to fully turn to account , since the cyber security consulting is currently worth an estimateg $16.5 billion a year globally.

The terms of the Encription deal, which closed Friday, were not disclosed.

“This is a natural extension of what we do right now,” said James Mackey, BlackBerry‘s head of corporate development. “We’re very excited about this new offering and we think it is highly complementary and a nice addition to our security portfolio.”

The acquisition will give BlackBerry BBRY 2.75%  the opportunity to also cross-sell some of its own security products, said Mackey.

BlackBerry said the new consulting services and tools, along with its existing security offerings, will help its clients to identify the latest cyber security threats, develop mitigation strategies, and implement the necessary IT security standards to defend against cyber attacks.

The acquisition of Encription is the latest in a string of software and services focused acquisitions made by BlackBerry in the last year, since it is attempting to boost revenue from software and services to offset the revenue declines from its smartphone unit and legacy system access fees.