- Cognite Software Ltd CGNT has agreed to sell its Situational Intelligence solutions, which are part of Cognyte’s Threat Intelligence Analytics offering, to Volaris Group for $47.5 million plus a performance-based earn-out of up to to $35.0 million.
- The transaction is expected to close in Cognyte’s fourth quarter.
- “Given the overall environment this year, we have decided to shift our focus to fewer use cases to accelerate growth and improve margins, and we believe we will benefit from increased focus,” said Elad Sharon, CEO by Cognyte.
- For the fiscal year ended January 31, 2022, excluding the assets disposed of, revenue would have been $439.5 million for all periods, representing growth of 9.9% year over year.
- In the first half of the financial year, the assets sold accounted for around 10% of total sales.
- The assets sold include products and intellectual property, customer contracts and employees.
- Approximately 10% of its employees are likely to be transferred with the company in R&D, sales and marketing, operations and services, and G&A.
- Cognyte reported non-GAAP revenue for the second quarter of fiscal ’23 declined 30.1% year over year to $81.3 million, missing consensus of $92.5 million.
- Non-GAAP EPS loss of $(0.04) beat consensus loss of $(0.17).
- Price promotion: CGNT shares traded 13.40% higher to $3 on the last check Wednesday.
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