UPDATE 1-BlackBerry buffs up security credentials with Secusmart deal
(Adds analyst comment, share price)
By Euan Rocha
NEW YORK, July 29 (Reuters) - BlackBerry Ltd is buying a privately held German firm that specializes in voice and data encryption, it said on Tuesday, in a bid to burnish its credentials with highly security-conscious clients like government agencies.
The Waterloo, Ontario-based smartphone maker did not disclose the terms of its deal to acquire Secusmart GmbH, which specializes in encryption and anti-eavesdropping services for governments, companies and telecommunications service providers.
The acquisition is the latest by the smartphone pioneer to build on niche areas in an attempt to reinvent itself under new Chief Executive John Chen and recover ground ceded to Apple Inc's iPhone and Samsung Electronics Co's Galaxy devices.
"It is a really reassuring sign that BlackBerry is now less focused on firefighting and more focused on identifying and building for the long-term into enterprise services," said CCS Insight analyst Geoff Blaber.
Still, BlackBerry shares fell 4 percent to $9.54 on Nasdaq and C$10.45 on the Toronto Stock Exchange.
Chen wants to remain a competitor in the smartphone segment, but is focused on building on BlackBerry's strong mobile device management abilities by beefing up its security and corporate app offerings.
Secusmart's technology is being used to protect the devices of government officials in both Canada and Germany, including the BlackBerry device used by German Chancellor Angela Merkel in the wake of the U.S. spying scandal last year. Continued...