If any exit can demonstrate how the economy benefits when a young company is bought by a larger company, it was IBM’s purchase of Q1 Labs of Fredericton in early 2012.
That purchase, reportedly worth more than $600 million, did more than just reward investors and staff at the cybersecurity company. It has led to hundreds of jobs in cybersecurity R&D in the New Brunswick capital, and made New Brunswick a genuine leader in research in cybersecurity, one of hottest segments of the IT world.
When the deal was announced in October 2011, Q1 Labs was officially headquartered in Waltham, Mass. But its 200 employees included a massive development team in Fredericton, where the company had started a decade earlier. What has been under-appreciated in Atlantic Canada is that IBM has invested heavily in its cybersecurity team in Fredericton, doubling its staff there, and Sandy Bird, the Q1 Labs Chief Technology Officer, is now the CTO for IBM’s global cybersecurity unit. From his base in Fredericton, he oversees 20 major R&D labs around the world.
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