After switching its focus to security software, BlackBerry Limited (TSX: BB) is looking to cash out its mobile device assets. The former smartphone brand announced today that it has entered into a patent sale agreement with Delaware-based SPAC Catapult IP Innovations for US$600 million.
The patents involved in the sale, referred to by the firm as “legacy patents”, are mainly related to mobile devices, messaging, and wireless networking. The transaction is also said to not impact the current customers and products of Blackberry.
Catapult, a blank check firm formed to acquire the assets, will be financing the transaction with US$450 million in cash and US$150 million in a promissory note payable in five equal annual installments starting three years after closing. The SPAC will partly finance the acquisition from its US$450 senior secured term loan.
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Completion of the transaction is subject to regulatory approvals both in the US and Canada, which could take up to 210 days.
BlackBerry last traded at $10.07 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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