• Blackberry, now a cybersecurity company, has decided to sell its non-core patent assets related to mobile devices, messaging, and wireless networking for USD 600 million to Catapult IP Innovations Inc., a special purpose vehicle formed specifically to acquire the patent assets of Blackberry.

• The transaction comes after Blackberry’s move to cease support for all its classic smartphones earlier in January. This company expects the sale to take around nine months, and at the closing of the deal, Blackberry will receive USD 450 million in cash and USD 150 million in promissory notes, funded by a syndicate led by Toronto-based Third Eye Capital.

• Patents pertaining to Blackberry’s current core business operations comprising cybersecurity services and automotive software are excluded from the sale. The company also announced that it will get back the license to the patents being sold and that the transaction will not affect its customers from using any of its products or services.

<ul><li> Analyst QuickTake: Blackberry has been windowing down its legacy mobile business and has shifted its focus to cybersecurity software and services over the years, expanding largely through acquisitions of companies such as Cylance, Good Technology, and WatchDox. Blackberry has also partnered with disruptors such as Stellar Cyber to enhance its cybersecurity offerings and also led the USD 20 million Series B funding round of SAM Seamless Network , an IoT security startup that provides security solutions to mobile operators and gateway manufacturers. The company now secures 500 million endpoints, which also includes 195 million vehicles.