BlackBerry has agreed to sell itself for $4.7 billion to a group led by largest shareholder, Fairfax Financial Holdings Ltd.
BlackBerry said 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% of BlackBerry. Watsa stepped down when BlackBerry announced it was considering a sale last month.
"We believe this transaction will open an exciting new private chapter for BlackBerry its customers, carriers and employees," Watsa said in a statement. "We can deliver immediate value to shareholders, while we continue the execution of a long-term strategy in a private company.
BlackBerry said its board of directors approved the terms of the letter of intent. The statement said BlackBerry and Fairfax will negotiate and execute a definitive transaction agreement by Nov. 4.
Watsa said in April that he's a "big supporter" of current CEO Thorsten Heins and called his promotion the right decision in early 2012. He also said he's excited about the company's new BlackBerry 10 operating system.