Fairfax to acquire Blackberry for $4.7bn

Canada based Fairfax Financial Holdings is buying struggling smartphone maker Blackberry for $4.7bn (£3bn).

Blackberry has issued a statement confirming the news by saying, it “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”.

Fairfax is incidentally largest stock holder of Blackberry with 10% stocks. The deal is expected to complete around Nov. 4.

Fairfax CEO and Chairman, India-born Prem Watsa said, “We believe this transaction will open an exciting new private chapter for Blackberry, its customers, carriers and employees. 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.”

As BlackBerry is financially struggling due to poor sales, it seems it is looking like the best possible scenario for them. On Friday, Blackberry announced 4,500 jobs cuts to curb losses.

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