BlackBerry, once a leader of the smartphone business and new technologies, decided to shut down its smartphone business not so long ago. Now that its smartphone business is said and done, the company has decided to sell its legacy patents to Catapult IP Innovations Inc. for $600 million.
BlackBerry says that the majority of the patents are related to mobile devices, messaging, and wireless networking. The report from Ars Technica claims that these patents are related to BlackBerry's phones, QWERTY keyboards, and BlackBerry Messenger (BBM). BlackBerry says the transaction will not impact customers’ use of any of BlackBerry’s products, solutions, or services.
Catapult IP Innovations is a "special purpose vehicle" formed to acquire the BlackBerry patent assets, as per the press release. Catapult's funding for the $600 million agreement is a $450 million loan, which will be handed to BlackBerry in cash immediately, while the leftover $150 million is a "promissory note" which will be paid in five equal annual installments of $30 million in cash, with the first payment due in three years.
Completion of the transaction is conditional upon, among other things, the satisfaction of all regulatory conditions under the Hart–Scott–Rodino Antitrust Improvements Act in the United States and the Investment Canada Act. This process could take up to 210 days.
BlackBerry's current business revolves around its QNX car infotainment system and enterprise security solutions.
Source: BlackBerry | Via: Ars Technica