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August 14, 2012

IBM considering purchase of RIM’s BlackBerry email software division

IBM has informally approached Rim to purchase RIM's enterprise services division

By CBR Staff Writer

International Business Machines (IBM) is considering acquiring Research in Motion (RIM)’s division, which operates a network of secure servers deployed for supporting RIM’s BlackBerry devices.

According to unnamed sources cited by Bloomberg, IBM has informally approached Rim to buy the unit.

The enterprise services division is claimed to be RIM’s most valuable operational asset, as it is the software which delivers emails to millions of ‘suit pockets’, and has enhanced security features when compared to other softwares.

The transaction is expected to be worth about $1.5bn to $2.5bn based on the number of included assets.

The sale is expected to reduce the Canadian firm to its handset division, which has seen its market capitalisation pared over 70% in the last year alone.

RIM had introduced the mobile email in its BlackBerry devices more than a decade ago, but in recent years the company’s fortune has dwindled as consumers increasing acceptance of Apple’s iPhone and devices based on Google Android operating system.

The acquisition of RIM’s enterprise-service business will help IBM in offering a secure and speedy e-mail system on consumer products.

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The software is expected to offer IT departments with tight control over the security of corporate information through the use of encryption algorithms for confounding attempts to cut off emails and BBM instant messages.

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