BlackBerry agrees $4.7bn takeover deal
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BlackBerry has signed a letter of intent which provides for it to be bought by a consortium led by Fairfax Financial Holdings.
Under the terms of the letter, BlackBerry shareholders would receive $9 in cash for each BlackBerry share they hold, valuing the company at $4.7billion.
Prem Watsa, chairman and ceo of Fairfax, 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."
The move follows the establishment in August 2013 of a special committee to review strategic alternatives for the company.
Barbara Stymiest, chair of BlackBerry's board of directors, said: "The special committee is seeking the best available outcome for the company's constituents, including for shareholders." However, BlackBerry is still pursuing a 'go shop' approach, which allows a better offer than that of the Fairfax led consortium to be considered.
