BlackBerry announced Monday that it has agreed to be acquired by Fairfax Financial Holdings Limited, a Toronto-based financial holding company, for $4.7 billion.
The company said that it has signed a letter of intent agreement with Fairfax, which owns about 10 percent of BlackBerry’s common shares.
The deal was recommended by a special committee BlackBerry formed last month after disappointing sales of its newest handsets.
Last week, the company announced it will lay off 4,500 employees, about 40 percent of its workforce, and will posted nearly $1 billion in losses in its second quarter.
The company’s special committee said that it will consider alternative offers to the Fairfax consortium proposal during what is called a “go-shop process.”
“Importantly, the go-shop process provides an opportunity to determine if there are alternatives superior to the present proposal from the Fairfax consortium,” Barbara Stymiest, the chair of BlackBerry’s board of directors, said in a statement.