Canadian mobile phone company Blackberry has agreed to buy Dusseldorf-based technology company Secusmart, which provides anti-eavesdropping technology used by the German chancellor, Angela Merkel.
Secusmart said the deal is still subject to regulatory approval and did not release any financial details.
The German interior ministry appeared surprised by the sale and a ministry representative said the government is looking at whether the sale comes under the Foreign Trade Law, which may give Germany the opportunity to challenge the transaction on security grounds.
Under the law, the German government can investigate, and possibly block, a deal if a person or company outside the European Union buys a Germany-based company.
The acquisition, if it goes through, would give Secusmart access to the global market.
The company sought to reassure clients in a statement, saying that it will continue to protect the security of its existing and new customers and will continue to use “end to end encryption” technology that means only the sender and intended recipient of a message can read it, to protect against third-party espionage.