BlackBerry Ltd. says it has agreed to sell its non-core patents to Catapult IP Innovations Inc. for US$600 million.
The company says Delaware-registered Catapult was formed specifically to acquire the patents, with funding from a group of lenders led by Toronto-based Third Eye Capital that also includes an unnamed Canadian pension fund.
Waterloo, Ont.-based says the patents being sold are not essential to its current core business but that it will receive a license back to them.
It says the patents relate primarily to mobile devices, messaging and wireless networking and that the deal won't affect the use of BlackBerry's products, solutions, or services.
The company says the deal will need to satisfy all regulatory conditions under the Hart–Scott–Rodino Antitrust Improvements Act in the United States and the Investment Canada Act, which could take up to 210 days.
BlackBerry has been winding down links to its legacy mobile business and is now focused on security software and services.
This report by The Canadian Press was first published Jan. 31, 2022.
Companies in this story: (TSX:BB)
The Canadian Press
Note to readers: This is a corrected story, an earlier version incorrectly had the currency in Canadian dollars.
