Brett Molina, USA TODAY

Shares of BlackBerry have plunged 18% in pre-market trading after the company confirmed it will abandon plans for a sale amid struggles in the smartphone market.

In a statement released Monday, BlackBerry announced it will receive a $1 billion investment from Fairfax Financial Holdings, the company who originally struck a deal to acquire the Canadian smartphone maker. The story was first reported by Toronto's Globe and Mail.

BlackBerry CEO Thorsten Heins will step down from his role, replaced on an interim basis by John Chen, who will also serve as the executive chair of the company's board of directors.

"BlackBerry is an iconic brand with enormous potential -- but it's going to take time, discipline and tough decisions to reclaim our success," said Chen in a statement. "I look forward to leading BlackBerry in its turnaround and business model transformation for the benefit of all of its constituencies, including its customers, shareholders and employees."

Before BlackBerry, Chen served as chairman and CEO of Sybase, an enterprise and mobile software company acquired in 2010 by SAP.

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