BlackBerry acquired by Fairfax Financial at USD 4.7 billion

After much rumors and speculation, today BlackBerry Limited limited has announced that they’ve signed a letter of intent agreement with a consortium led by Fairfax Financial Holdings Limited to be acquired for approximately $4.7 billion USD. This almost half the amount of  money Microsoft is buying Nokia. Fairfax currently owns 10% of BlackBerry, and this deal would put BlackBerry shareholders in a position to receive $9 USD for each stock.

It should be noted however that there’s a diligence period in play here with the two companies that say BlackBerry cannot enter into a deal with any other company offering less than $9.00 without the approval of the board of directors. If a deal with a group outside this current offer is initiated, BlackBerry will essentially own Fairfax a cool $0.30 a share. If a “definitive agreement” is signed between BlackBerry and Fairfax, this “termination fee” will be raised to $0.50 per share.

This solution for BlackBerry will be aimed directly to the enterprise universe rather than the consumer market. As Prem Watsa, Chairman and CEO of Fairfax suggests, they’ll be aiming to provide value to current shareholders as they, meanwhile, work on “a long-term strategy in a private company with a focus on delivering superior and secure enterprise solutions to BlackBerry customers around the world.”

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