Fairfax Financial led consortium to buy BlackBerry for $4.7 billion

BlackBerry signed a letter of intent with a consortium led by Fairfax Financial late on Monday (September 23), which will buy the company for $4.7 billion. Fairfax has offered to pay $9 per share in cash. With this the speculation about who would buy the once mighty but now struggling smartphone manufacturer, which had been looking for a buyer for some time, seems to have ended.

Fairfax already owns approximately 10 per cent of BlackBerry's common shares.

A statement issued by BlackBerry states that the deal is expected to be completed by November 4 this year, with the consortium using the time until then to conduct due diligence.

However, some uncertainty remains, as till that time BlackBerry is permitted to actively solicit, receive, evaluate and potentially enter into negotiations with parties that offer alternative proposals.

Prem Watsa, Chairman and CEO of Fairfax, said: "We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees. We can deliver immediate value to shareholders, while we continue the execution of a long-term strategy in a private company with a focus on delivering superior and secure enterprise solutions to BlackBerry customers around the world."