Following Friday's devastating news that more than 35% of the company's workforce is being laid off, BlackBerry announced Monday that the Canadian smartphone maker has reached a deal to leave public life and go private.
BlackBerry will be taken private by a group led by Fairfax Financial Holdings.
BlackBerry has signed a letter of consent that will pay shareholders $9 in cash for each share of BlackBerry 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. Fairfax, which owns approximately 10 percent of BlackBerry’s common shares, intends to contribute the shares of BlackBerry it currently holds into the transaction.
As MMi reported Friday, BlackBerry is taking a whopping loss of close to $1 billion in its second quarter. The failure of the BlackBerry Z10 is the primary reason for the sad news that close to 5,000 people will be losing their jobs.
“We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees," says Prem Watsa, Chairman and CEO of Fairfax. "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.”