Monday 18 December 2017

Troubled RIM may sell €80m Newbay

Nick Webb

Nick Webb

Irish "cloud software" company Newbay may be sold as part of a strategic review being conducted by its owner, BlackBerry maker RIM, just a year after being bought for around €80m.

The ongoing delay of the new BlackBerry 10 handset, increased competition from the likes of Apple and major losses saw a boardroom reshuffle at RIM, with new CEO Thorsten Heins seeking to cut costs and tidy up the Canadian company's balance sheet. Earlier this year JP Morgan and RBC Capital markets were hired to conduct a lengthy "strategic review".

Recently, RIM reported quarterly losses of $235m as the number of BlackBerrys shipped fell from 10.6 million to 7.4 million during the quarter. The firm plans to cut 5,000 jobs worldwide in an attempt to shave $1bn off its cost base.

Newbay -- which develops mobile phone software enabling users to create, store and share digital content in the cloud -- was established by ex-Baltimore technologies executive Paddy Holohan in 2002. The company was also backed by Barry Maloney's Balderton and Fidelity.

Earlier this month Newbay appointed a new chief executive, Tom Goguen, and a new finance chief, Mark Payne, in a bid to expand its international business. RIM and Newbay declined to comment.

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