Canadian smartphone manufacturer BlackBerry LimitedBBRY recently wrapped up the acquisition of AtHoc - a provider of networked crisis communications service. The acquired entity will function as a unit of BlackBerry.
The AtHoc acquisition will significantly boost BlackBerry's alternative business by helping clients share critical information within an organization, in a secure manner. Moreover, the AtHoc application can be connected to all platforms and devices, thereby allowing more flexibility.
Meanwhile, this transaction will allow BlackBerry to integrate its own cross-platform enterprise portfolio with AtHoc's application platform to deliver enhanced services to corporate clients. Also, AtHoc Connect software will be made available to these customers, which will allow them to exchange critical information in times of crisis.
BlackBerry has been facing a persistent decline in smartphone sales owing to its underperforming operating system. Further, the launch of Apple Inc.'s AAPL iPhone dealt a huge blow to both BlackBerry and Nokia NOK .The situation got worse with the launch of Google Inc.'s GOOG Android software, which was an instant hit as well.
Lately, BlackBerry has been exploring several alternate business options which should help the company offset escalating losses in its smartphone segment. Also, BlackBerry's BES12 platform is gaining increasing traction.
Meanwhile, a strong cash position has encouraged the company to boost its alternative business plans by means of acquisition. Earlier, the Canadian handset maker had acquired WatchDox, a data security company which delivers secure enterprise file-sync-and-share (EFSS) solutions on devices. The company also completed the acquisition of Secusmart, a leader in high-security voice and text encryption and also bought Movirtu, a provider of virtual SIM solutions.
BlackBerry currently carries a Zacks Rank #3 (Hold).