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HERZLIYA, Israel - Cognyte Software Ltd. (NASDAQ: CGNT), a company specializing in investigative analytics software, announced today the acquisition of GroupSense, Inc., a digital risk protection services company. The announcement comes as Cognyte’s stock trades near its 52-week high of $11.12, having delivered an impressive 12.54% return in the past week alone. This strategic move is expected to bolster Cognyte’s growth in the U.S. market and enhance its global customer base.According to InvestingPro data, Cognyte maintains a healthy balance sheet with more cash than debt, positioning it well for strategic acquisitions.
The transaction, which involves an initial payment of approximately $4 million and an additional earnout of up to $5 million contingent on GroupSense achieving certain post-acquisition targets, marks a significant step in Cognyte’s expansion efforts within the United States. The company’s current market capitalization of $787 million and strong revenue growth of 11.88% over the last twelve months suggest a solid foundation for this strategic expansion.
Founded in 2014, GroupSense has been instrumental in helping organizations protect their digital assets from cyber threats. The company’s approach combines automated tools with human expertise to deliver tailored cyber intelligence to its customers, which include state and local government agencies as well as various enterprises.
With the acquisition, GroupSense’s clientele will have access to Cognyte’s advanced cyber threat intelligence platform, which is expected to provide enhanced protection for their brand integrity and operational security amid the growing online threats. The company’s financial health appears robust with a current ratio of 1.3, indicating sufficient liquidity to support its operational expansion.
Elad Sharon, CEO of Cognyte, expressed the company’s commitment to leading the investigative analytics market and increasing its North American presence. "The addition of GroupSense allows us to extend our market presence and deliver added value to their customers through our AI-driven technology," said Sharon.
GroupSense CEO Kurtis Minder also commented on the acquisition, noting the growth opportunities and enhanced solutions that will now be available to their customers. "Joining Cognyte, with advanced technologies and strong R&D capabilities, is a major milestone for both our company and our customers," Minder said.
Cognyte is recognized for its data processing and investigative analytics solutions, which are designed to provide actionable intelligence for a safer world. The company’s offerings, which are powered by AI, big data analytics, and advanced machine learning, are relied upon by law enforcement, national security, and intelligence agencies worldwide.
This press release contains forward-looking statements regarding the expected growth and strategic benefits of the acquisition. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. More detailed information on these risks can be found in Cognyte’s filings with the SEC.InvestingPro analysis reveals that analysts expect Cognyte to return to profitability this year, with 12 additional exclusive ProTips available for subscribers. For comprehensive insights into Cognyte’s valuation and growth prospects, access the detailed Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks.
The information in this article is based on a press release statement.
In other recent news, Cognyte Software Ltd. reported strong financial performance, surpassing Wall Street expectations with first-quarter 2025 earnings per share (EPS) of $0.03, compared to a forecast of $0.01, and revenue of $94.5 million, exceeding the anticipated $93.15 million. The company’s full-year revenue grew by 12% year-over-year, reaching $350.6 million, primarily driven by software sales. Additionally, Cognyte secured a three-year, $10 million annual subscription deal with a national security agency in the EMEA region and a $5 million contract with a law enforcement agency in the same area. Evercore ISI analyst Kirk Materne raised Cognyte’s stock price target to $10.00 from $7.50, maintaining an In Line rating, following these positive developments. The company’s management remains optimistic about future demand, particularly in the U.S. market, which is seen as a key growth opportunity. Despite a 7% year-over-year decline in total Remaining Performance Obligations (RPO) to $545 million, the first-quarter RPO will include a recently announced $60 million deal. Cognyte’s strategic focus on expanding its U.S. presence and enhancing technological capabilities is expected to drive continued growth.
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