Fairfax to buy BlackBerry

BlackBerry said on Monday it has agreed to a buyout by Fairfax Financial Holdings for $4.7 billion.

BlackBerry has agreed to sell itself for $4.7 billion to a group led by largest shareholder, Fairfax.

BlackBerry said on Monday that a letter of intent has been signed and its shareholders will receive $9 in cash for each share.

Fairfax head Prem Watsa is a former board member who owns 10 per cent of BlackBerry.

Mr. Watsa stepped down when BlackBerry announced it was considering a sale last month.

Trading of the company’s stock was halted ahead of the news. BlackBerry shares plunged after the company announced on Friday a loss of nearly $1 billion and layoffs of 4,500 workers.