Fairfax Financial to acquire BlackBerry for $4.7 billion
Canada based firm, Fairfax Financial has agreed to pay about $4.7 billion for smartphone maker, BlackBerry that was once a dominating force in the market.
Fairfax Financial already owns 10 per cent of the company and will now expand its stake in the troubled firm. Fairfax Financial has reportedly joined a group of other buyers to acquire BlackBerry shares at $9 per unit and take the company private by removing it from the public listing on Nasdaq.
The shares of the company have fallen from a high of $148 in June 2008 to around $8 a share at present.
Recently, the Canadian smartphone maker has warned that it is heading towards announcing a huge operating loss and might have to cut as many as 4,500 jobs. The company has been struggling to compete with rivals Apple's iPhone and Samsung Electronics Galaxy phones. The developments would force the company to look for investors for the company. The Waterloo, Ontario-based company has already formed a special committee to consider a potential sale, as well as joint ventures and partnerships.
BlackBerry said in a statement that Fairfax Financial will conduct a due diligence process till 4 November, 2013. The deal has not been finalised yet and BlackBerry could accept a better offer from other buyers.