BlackBerry Strikes Go-Private Deal for $4.7 Billion

September 23, 2013

BlackBerry today [Sept 23] announced it has signed a letter of intent agreement under which a consortium to be led by Fairfax Financial Holdings Limited has offered to acquire the company subject to due diligence.

The letter of intent contemplates a transaction in which BlackBerry shareholders would receive U.S. $9 in cash for each share of BlackBerry share they hold, in a transaction valued at approximately U.S. $4.7 billion.

The consortium would acquire for cash all of the outstanding shares of BlackBerry not held by Fairfax, which owns approximately 10 percent of BlackBerry’s common shares.

“We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees,” Prem Watsa, chief executive of Fairfax, said in a statement. “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.”

The announcement comes only three days after BlackBerry dismal second-quarter results, including a loss of close $1 billion and plans to layoff 40% of its employees.

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