Canadian insurance major Fairfax has agreed to buy ailing phone maker BlackBerry in a $4.7bn transaction, paying $9 per share in cash to shareholders, the company has said.
The phone maker said that it is entitled to scout for other offers during the due diligence period, subject to payment of a termination fee if an alternative offer is accepted.
Fairfax owns 10% in BlackBerry already.
The phone company, last week, had announced a $1 bn loss for the second quarter of the year as it struggled to sell more phones. It also announced that it will lay off 4,500 employees. The consortium led by Fairfax will seek financing from BofA Merrill Lynch and BMO Capital Markets for the BlackBerry buyout & subsequently take the company private.
Dilligence is expected to be complete by 4 November 2013, said BlackBerry.
BlackBerry, which lost much of its market share to rivals like Apple and Samsung, had been struggling to claw its way back up with little success.
Earlier this month, Microsoft acquired Nokia for Eur 5.44 bn in cash.