This morning Blackberry Ltd (NASDAQ:BBRY) announced that it will buy Good Technology Corp. (NASDAQ:GDTC) for $425 million in efforts to expand it client management. This deal seems odd to a few because both of these companies are considered rivals and share some of the same mobile software clients. BlackBerry wants to boost their smartphones running on different operating structures.
It may be hard to believe but at one point a BlackBerry phone was one of the more popular phones to have and was considered the pioneer of smartphones. Since the existence of Apple's (NASDAQ:AAPL) iPhone and others BlackBerry has moved further down in the chain, yet the company still believes that they have the best phones for business use. Months ago BlackBerry announced that their main focus was to build their business side out because that division will be the one they will be number one at.
In their eyes this deal is perfect because it will lead them to new customers in the business side and help manage the devices software for enterprise customers. The company said that they expect that $160 million will be generated in revenue due to this deal by the end of the first year.
BlackBerry Chief Executive John Chen said a few words about this deal, "There obviously will be hard work involved," he said. "But I do see a lot of opportunity here to drive value for our shareholders."
Chen promised that the company would remain cash flow positive so this deal is a way to show how serious he is about that.