Canadian technology firm BlackBerry (BB) is selling its Cylance cybersecurity business to privately held security software firm Arctic Wolf for gross proceeds of $160 million U.S.
The sale is occurring at a significant loss to BlackBerry, which acquired Cylance in February 2019 for $1.40 billion U.S.
Under terms of the deal, Arctic Wolf will pay $160 million U.S. of cash and approximately 5.5 million of its own common stock to BlackBerry for Cylance.
Cylance uses A.I. to help users detect malware and prevent cyberattacks.
The sale to Arctic Wolf is expected to close within a few months, said the companies in a joint news release.
BlackBerry has been trying to restructure its business over the past year amid declining revenues at the Canadian technology firm.
The stock of BlackBerry has declined 20% in the last 12 months and is down 50% over the past five years.
The company’s share price is currently at $4.40 per share, making it a penny stock defined as any security that trades for less than $5.