Blackberry said that it was scraping its plan to find a new buyer and is replacing its CEO Thorsten Heins, after a deal to sell the company to Fairfax Financial Holdings fell through. The company is replacing CEO Thorstein Heins with interim CEO John S. Chen.
BlackBerry also said that Fairfax and “other institutional investors” would invest $1 billion in the company in convertible securities. The deal will be complete within the next two weeks.
“Today’s announcement represents a significant vote of confidence in BlackBerry and its future by this group of preeminent, long-term investors,” current BlackBerry chair Barbara Stymiest said in a statement. “The BlackBerry Board conducted a thorough review of strategic alternatives and pursued the course of action that it concluded is in the best interests of BlackBerry and its constituents, including its shareholders. This financing provides an immediate cash injection on terms favorable to BlackBerry, enhancing our substantial cash position. Some of the most important customers in the world rely on BlackBerry and we are implementing the changes necessary to strengthen the company and ensure we remain a strong and innovative partner for their needs.”
