BlackBerry creates separate subsidiary to 'deepen reach' within US government

Marco Green
March 14, 2019

In a move to deepen ties to US federal agencies, BlackBerry (NYSE:BB) has established a new Government Solutions unit. The new company, which will sell cloud based services to government, will have separate offices and technology infrastructure, as well as a board of directors.

BlackBerry already provides security and data privacy for almost all of the Cabinet and USA federal departments. It is led by Rear Admiral Robert "Bob" E. Day, Jr., U.S. Coast Guard (Ret.) who joined BlackBerry in 2016.

Federal agencies that use BlackBerry's mobile security products include the departments of Defense, Energy, Homeland Security, Justice, Transportation, Treasury and Veterans Affairs.

The U.S. government and its agencies have always been a significant source of revenue for BlackBerry, which has been stressing its expertise in providing highly secure software and services since exiting the smartphone hardware business.

The company's vaunted security has always been a competitive advantage among public sector clients who have been a significant source of revenue.

BlackBerry sets up unit to serve U.S. government
BlackBerry deepens ties to U.S. government with new subsidiary

Based in Waterloo, Ont., BlackBerry is scheduled to release its 2018-19 financial results on March 29.

BlackBerry executive chairman and CEO John Chen said the new subsidiary will "deepen our reach" within the USA government sector as it manages a "tidal wave" of internet-connected devices.

"This new subsidiary allows us to deepen our reach within the USA government sector by ensuring our next-generation cybersecurity solutions meet FedRAMP and ATO [authority to operate] certifications, as well as provide our customers with a higher-level of service".

The new division will operate as a wholly owned subsidiary and pursue acceleration of the company's Federal Risk and Authorization Management Program initiatives. On Tuesday, the company announced that North Atlantic Treaty Organisation had purchased a contract for software that encrypts text and voice messages. For more information, visit www.BlackBerry.com and follow @BlackBerry.

Other reports by Click Lancashire

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