Canada-based telecommunications company BlackBerry has agreed to a $4.7 billion buyout by a group led by Fairfax Financial Holdings. The terms have only been agreed to in principle at this point but the acquisition could inject new life into the smartphone maker that has been flailing to stay afloat for years. Fairfax is BlackBerry’s largest shareholder.
The news comes just five days after BB announced its upcoming 5-inch BlackBerry Z30 touchscreen smartphone.
According to BBC News, BB released a statement saying “Diligence is expected to be complete by November 4, 2013. The parties’ intention is to negotiate and execute a definitive transaction agreement by such date,” essentially stating that Fairfax et al will navigate through BB’s technologies, employees, and finances in order to make sure they’re still willing to pull the trigger come November 4.
Fairfax’s proposal offers to buy outstanding company shares for $9 apiece, including contributions of its own shares to the transaction, despite the fact that on Friday “Blackberry announced 4,500 jobs cuts in a bid to stem losses.”
Interestingly, BBC News continues to note that despite the agreement with Fairfax in principle, BB will be actively shopping for more suitors and continue to “solicit, receive, evaluate and potentially enter into negotiations” with interested parties, perhaps illustrating a possible hesitation on Fairfax’s part or even BB’s own doubts as to Fairfax’s intentions.
Fairfax’s chief executive, Prem Watsa noted in a statement of his own,
“We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees. We can deliver immediate value to shareholders, while we continue the execution of a long-term strategy in a private company with a focus on delivering superior and secure enterprise solutions to BlackBerry customers around the world.”
Back in August, BB made it abundantly clear that it was looking for a person or group to for an alliance, partnership, joint venture, or buy out that would help decide the fate of the company’s future.
This is a developing story. Stay tuned to BostInno for the latest information regarding the BlackBerry buyout and we’ll be sure to keep you updated as more information continues to be made publicly available.
