By Dana Mattioli And Ben Dummett
BlackBerry Ltd. confirmed Tuesday it would buy closely held
WatchDox Ltd., its latest niche acquisition aimed at boosting sales
of mobile security offerings to government and corporate
customers.
The deal also gives the Canadian smartphone maker a platform to
expand its research and development operations into Israel, a
center for the development of security technologies.
Waterloo, Ontario-based BlackBerry didn't disclose financial
terms, but The Wall Street Journal reported earlier that it is
paying about $70 million for WatchDox.
Startup WatchDox is based in Palo Alto, Calif., and develops
software that allows companies to control how employees edit, copy,
print or forward files. Its software can also revoke access and
delete files remotely across desktop and mobile devices, including
BlackBerrys, Apple Inc.'s iPhones and smartphones powered by Google
Inc.'s Android operating system.
The acquisition follows BlackBerry's $32.5 million purchase in
September of Movirtu Ltd., which develops software that helps
companies reduce their employee mobile-device costs, and its $82
million acquisition in December of Secusmart GmbH, a maker of
mobile encryption and anti-eavesdropping technologies.
WatchDox and Secusmart together allow BlackBerry to offer
enterprise customers "secure voice, secure data, secure messaging
and secure documents," across platforms, Jim Mackey, BlackBerry's
executive vice president of corporate development, said in an
interview.
BlackBerry is betting on the sales of mobile security and
productivity software, and smartphones aimed at professionals, to
reignite growth after a failed attempt in 2013 to compete in the
consumer market against Apple, Samsung Electronics Co. and other
device makers.
Still, its growth strategy remains unproven amid uncertainty
BlackBerry can win back its traditional enterprise customers after
many abandoned its older technology for mobile security offerings
from Citrix Systems Inc., MobileIron Inc. and other rivals. Last
month, BlackBerry reported a 32% decline in quarterly revenue.
Founded six and half years ago, WatchDox counts private-equity
giant Blackstone Group L.P., Nike Inc., the well- known running
shoe maker, and the Californian Department of State Hospitals among
its customers. It won't say if it generates a profit.
The deal gives WatchDox access to BlackBerry's 160 carrier
partners to help its boost sales of its file security
technology.
"BlackBerry can really help us accelerate our reach into
markets," Moti Rafalin, WatchDox's chief executive and founder,
said in a telephone interview.
WatchDox also operates a research and development center in
Petah Tikva, Israel, where slightly more than half of its 85
employees work. Israel is a well-known technology center for
security and BlackBerry hopes the R&D center will allow it to
take advantage of this opportunity.
The WatchDox acquisition "is the best way to get to that market
and to get access to the talent," BlackBerry's Mr. Mackey said.
Write to Dana Mattioli at dana.mattioli@wsj.com and Ben Dummett
at ben.dummett@wsj.com
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