Now that it is completely out of the smartphone market, Waterloo, Ontario-based BlackBerry (BB) is selling its legacy intellectual property.
The company, which has pivoted to focus on security software, has announced that it's selling non-core legacy patents to Catapult IP Innovations for $600 million U.S., including $450 million U.S. in cash. The balance will come in the form of a $150 million U.S. promissory note.
In a news release, BlackBerry said the patents primarily relate to mobile phones, messaging, and wireless networking. The company added that it will license the patents and that the deal won't affect any of its current products or services.
Several analysts said in reports to clients that the patents sold for less money than expected. TD Securities (TD) cut its price target on BlackBerry stock to $7.00 U.S. per share from $8.50 U.S. as a result of a “lower-than-expected sale price.”
BlackBerry said it could take up to 210 days for the sale of its intellectual property to receive all necessary regulatory approvals.
