March 21, 2014 - 6:57 AM
WATERLOO, Ont. - BlackBerry (TSX:BB) says it has reached an agreement to sell most of its Canadian real estate holdings as part of an effort to improve its business.
The company will divest more than 3 million square feet of space and vacant lands, but did not disclose the buyer or the purchase price.
BlackBerry says it will lease back some of the properties.
"The successful sale of property in Canada will help us move toward our goal of continued operational efficiency," CEO and executive chair John Chen said in a statement Friday.
The company had announced in January that it planned to sell the majority of its Canadian real estate holdings.
BlackBerry pioneered the smartphone in 1999 and dominated for years, but since the late 2000s the company has been hammered by competition from the iPhone as well as Android-based rivals.
Under Chen — who took on the CEO post permanently late last year — BlackBerry has been working to turn around its business.
Chen said that BlackBerry is still committed to having a strong presence in Canada. It is keeping its headquarters in Waterloo, Ont.
The company said that more terms of the transaction will be announced once principal conditions are satisfied or waived by the parties.
The deal is expected to close in the first quarter of fiscal 2015.
BlackBerry's stock rose 13 cents, or 1.4 per cent, to US$9.55 in morning trading Friday on Nasdaq. In Toronto, its shares rose 14 cents to C$10.75.
News from © The Canadian Press, 2014