BlackBerry (NYSE:BB) appointed John Giamatteo as CEO and said that its IoT and Cybersecurity units will become fully standalone BlackBerry divisions, and that the company will no longer pursue subsidiary IPO of the IoT business.
Giamatteo, who will also serve as a board member, was appointed effective immediately. As President of BlackBerry’s Cybersecurity business unit, he drove enhancements to the product portfolio, go-to-market strategy and organizational efficiency, the company said in a press release on Monday.
Before joining BlackBerry, Giamatteo served as president and chief revenue officer at McAfee.
The company added that Richard (Dick) Lynch, who has served as interim CEO since Nov. 4, will continue as board chair.
In November, John Chen exited the company after having spent 10 years at the helm. In October, the Canadian company announced that it would separate its Internet of Things and cybersecurity businesses into two independently operated entities.
BlackBerry (BB) said on Monday that after a re-evaluation of the outcome of Project Imperium, its board decided to pursue a separation of the IoT and Cybersecurity businesses and establish them as standalone divisions.
In addition, the company will no longer pursue a subsidiary initial public offering of its IoT business unit.
The process will include the separation and streamlining of BlackBerry’s centralized corporate functions into business-unit specific teams, with an aim of each division operating independently and on a profitable and cashflow-positive basis going forward, the company noted.
“The Board, with input from its advisors, believes that a full separation of BlackBerry’s IoT and Cybersecurity businesses will open up a number of strategic alternatives that can unlock shareholder value,” said Lynch, board chair. “Management is focused on moving quickly to complete this reorganization that will further enhance the focus of both businesses on their respective markets as well as their capacity for fast, flexible decision-making.”
BlackBerry (BB) noted that to help with the separation and right-sizing process, it is in the final stages of selecting a consulting firm to provide expertise and additional resources for an independent evaluation.
BB -1.46% to $4.06 premarket Dec. 11