BlackBerry pioneered the smartphone in 1999 and dominated for years, but since the late 2000s the company has been hammered by competition from the iPhone as well as Android-based rivals.
Under Chen - who took on the CEO post permanently late last year - BlackBerry has been working to turn around its business.
Chen said that BlackBerry is still committed to having a strong presence in Canada. It is keeping its headquarters in Waterloo, Ontario.
The company said that more terms of the transaction will be announced once principal conditions are satisfied or waived by the parties.
The deal is expected to close in the first quarter of fiscal 2015.BlackBerry's stock rose 13 cents, or 1.4 percent, to $9.55 in morning trading Friday. Its shares are up more than 32 percent over the past three months.
