New Delhi: Veritas Capital, a private equity firm, has offered to buy BlackBerry Ltd (BB.TO), according to the sources familiar with the matter, months after the Canadian technology company began a strategic review.
BlackBerry’s US-listed shares, which earlier rose about 17% on the news, closed at $5.23, giving the company a market capitalization of $3.1 billion.
Details of the offer could not be learned. Blackberry and Veritas did not immediately respond to Reuters requests for comment.
The source said Veritas has made an offer for the entire company, adding that BlackBerry is also in talks with other potential buyers.
In May, BlackBerry said it would consider strategic options for its portfolio of businesses, including the possible separation of one or more of its businesses.
The company, founded in 1984, currently makes software for cars and cybersecurity. It became popular for its ubiquitous business smartphones, toted by executives, politicians and legions of fans in the early 2000s.
Last year, it pulled the plug on its smartphone business and has since been trying to sell its legacy patents related to its mobile devices.
In May, BlackBerry said it would continue with the previously announced sale of the patents related to its mobile devices to Malikie Innovations Limited for up to $900 million. A prior deal to sell those patents to Catapult IP Innovations Inc. for $600 million fell through as it took longer than usual to close.
BlackBerry said in 2016 that it would no longer manufacture its classic smartphones. Since then, the company has been attempting to remake itself as a provider of high-end software.
The two primary businesses Blackberry operates are focused on cybersecurity software, while the other makes “Internet-of-Things” products. Technology investor Veritas Capital primarily buys and invests in companies that provide government-focused tools and services.
Perella Weinberg Partners and Morgan Stanley (MS.N) are acting as financial advisors to BlackBerry for the strategic review.
