By Adriano Marchese
BlackBerry intends to create two standalone divisions out of its IoT and cybersecurity businesses, and has appointed John Giamatteo to head the company.
The Waterloo, Ontario-based cybersecurity company said Monday it will no longer pursue a subsidiary initial public offering of its internet-of-things business unit, which it had originally set out to do following a strategic review called Project Imperium.
BlackBerry said the process will include the separation and streamlining of its centralized corporate functions into business-unit specific teams, with an aim that both divisions will operate independently and on a profitable and cash flow-positive basis going forward.
It said this new course of action will open up a number of strategic alternatives that are expected to unlock shareholder value.
BlackBerry said it is in the final stages of hiring a consulting firm to support the separation and right-sizing process.
“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,” Board Chair Richard Lynch said.
Additionally, BlackBerry appointed Giamatteo to replace John Chen, who resigned at the end of October following the conclusion of Project Imperium, on a permanent basis. Project Imperium at the time led the company to decide to split into two separate units.
Giamatteo brings with him over 30 years of experience with global technology companies, and was most recently BlackBerry’s cybersecurity business unit’s president.
Before his time at BlackBerry, he was chief revenue officer at McAfee, and also served as chief operating officer at internet and mobile security provider AVG Technologies.
Between Chen’s retirement and Giamatteo’s appointment, Lynch served as interim CEO.
Write to Adriano Marchese at [email protected]