BlackBerry Creates Two Standalone Divisions for IoT and Cybersecurity Businesses

By Adriano Marchese

Waterloo-based cybersecurity company, BlackBerry, has announced plans to create two separate divisions for its IoT and cybersecurity businesses. John Giamatteo has been appointed to head the company.

Initially, BlackBerry had intended to pursue a subsidiary initial public offering for its internet-of-things business unit. However, following a strategic review called Project Imperium, the company has decided against this course of action.

BlackBerry will now focus on the separation and streamlining of its centralized corporate functions into business-unit specific teams. The goal is for both divisions to operate independently and achieve profitability on a cash flow-positive basis in the future.

This new strategy is expected to unlock shareholder value and will result in several strategic alternatives.

To support the separation and right-sizing process, BlackBerry is in the final stages of hiring a consulting firm.

Richard Lynch, Board Chair, stated that management is committed to completing this reorganization promptly. The aim is to enhance the focus of both businesses on their respective markets and improve their capacity for fast, flexible decision-making.

In addition to creating two standalone divisions, BlackBerry has appointed John Giamatteo as the permanent replacement for John Chen. Chen resigned at the end of October after the conclusion of Project Imperium, which led to the decision to split the company.

Giamatteo brings with him over 30 years of experience in global technology companies. He was previously the president of BlackBerry's cybersecurity business unit. Prior to that, he held positions such as chief revenue officer at McAfee and chief operating officer at AVG Technologies, an internet and mobile security provider.

During the transitional period between Chen's retirement and Giamatteo's appointment, Richard Lynch served as interim CEO.