UPDATED 13:00 EST / APRIL 21 2015

BlackBerry CEO John Chen NEWS

BlackBerry’s revival rumbles on with WatchDox acquisition

blackberry-logoBlackBerry Ltd. has made another bold move as its continues its revival, acquiring Israeli security startup WatchDox in a move that once more illustrates its new, laser-sharp enterprise software focus.

The once-beleagured handset maker confirmed the acquisition in a statement earlier today but refused to disclose the terms of the deal. However, Isreali tech sites Globes and GeekTime say that BlackBerry has shelled out in the region of $100 million to $150 million for WatchDox, which offers a cross-platform solution for digital rights management and secure file sharing.

John Chen, BlackBerry’s Executive Chairman and CEO, mentioned in a statement that the plan is to integrate WatchDox with the firm’s Enterprise Mobility Management (EMM) portfolio. WatchDox’s technology will be available on BES12, which is available on multiple platforms.

“This acquisition represents another key step forward as we transition BlackBerry into the premier platform for secure mobile communications software and applications, supporting all devices and operating systems,” said Chen. “Together with last year’s Secusmart acquisition, Samsung partnership, our own internal development efforts, and now the acquisition of WatchDox, we now have capabilities to secure communications end-to-end from voice, text, messaging, data and now enterprise file-sync-and share.”

WatchDox was founded in 2008 and has raised almost $36 million from investors including Blackstone Group, Gemini Israel Ventures, Millennium Technology Value Partners, Shasta Ventures, and Shlomo Kramer, notes TechCrunch. It’s technology allows enterprise employees to share company data securely between themselves and other authorized persons, and ensures that access to such data is restricted even when a file is sent to someone outside of the organization. Which means that sensitive data cannot be viewed by unauthorized persons or posted elsewhere. As for WatchDox’s Digital Rights Management technology, this is designed to prevent leaks of sensitive scripts and videos.

Acquiring WatchDox will help BlackBerry gain a foothold in several industries as it looks to grow its own enterprise software business. WatchDox’s customers come from numerous industries, including energy, finance, healthcare and government, among others.

BlackBerry’s enterprise software strategy has helped the once struggling handset maker to survive a perilously close brush with death, and such has been its revival that it even posted a small $28 million profit in the last quarter. Admittedly the company’s revenues were still $600 million down from the $976 million it made the year before, but by stepping its enterprise software efforts and refusing to give up on hardware, BlackBerry has every chance of completing its turnaround and returning to growth.


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