The cash infusion and the push for encrypted communications are in part a direct result of National Security Agency whistleblower Edward Snowden's revelations about massive government surveillance.
One of the major names behind the “Android for the Paranoid” phone is Ross Perot Jr who was an early investor in SPG Technologies, the name of the joint venture between Silent Circle and Geeskphone.
'"I'm pleased to be part of the incredible growth of Silent Circle and to see our capabilities and opportunities rise alongside of the growing recognition of the importance of privacy in the modern enterprise," he said.
The only thing that stuffs up the BlackPhone at the moment is that it is not much chop as a consumer device. The buyout announcement comes as the need for secure mobile communications was highlighted after the Snowden disclosure a week ago that governments may have breached the encryption on Gemalto's SIM cards.
The BlackPhone had a few security problems too. A recently fixed vulnerability disclosed last month in the BlackPhone instant messaging application gave attackers the ability to decrypt messages, steal contacts, and control vital functions of the device.
Silent Circle made news in 2013 when it shuttered its secure e-mail service amid fears that the metadata of encrypted e-mail could be scooped up by the NSA.