Cognyte Acquires GroupSense in $4M Threat Intelligence Agreement

Israel-based Cognyte has announced its acquisition of GroupSense, a digital risk protection firm based in Arlington, Virginia, a move intended to bolster its cyber threat intelligence offerings within the U.S. market. The firm will pay $4 million upfront with the potential for an additional $5 million based on future performance metrics.

Cognyte aims to expand its presence within the North American cybersecurity sector, specifically targeting state and local government clients. This acquisition complements Cognyte’s capabilities by integrating GroupSense’s investigative analytics and cyber threat detection functionalities. CEO Elad Sharon stated, “The addition of GroupSense allows us to extend our market presence and deliver added value to their customers through AI-driven technology designed to effectively protect their brands and assets.”

GroupSense, established in 2014, has a skilled workforce of 33 professionals and has raised nearly $2 million in funding. This includes a notable seed round of $1.2 million in 2016. Kurtis Minder, the founder, previously worked as a global account manager at Fortinet, focusing on cloud security models.

The U.S. market for cybersecurity, particularly among state and local governments, represents a ripe area for growth for Cognyte. By acquiring GroupSense, Cognyte positions itself to navigate past market entry barriers. Approximately 75% of GroupSense’s team operates within the United States, enhancing Cognyte’s domestic footprint.

GroupSense provides analyst-driven intelligence leveraging over 1,000 personas across various platforms to engage with potential threats—capabilities that will enhance Cognyte’s largely automated threat analysis framework. This combination of automated systems and human expertise is expected to enrich Cognyte’s analytics, particularly for intricate tasks such as ransomware negotiations.

“We’re delivering a powerful combination: a technology-driven CTI platform complemented by real-world threat intelligence tailored to the needs of U.S. CISOs and beyond,” Sharon emphasized. Minder noted that this acquisition will enhance GroupSense’s service delivery, broaden threat detection, and expand geographic reach by tapping into advanced R&D capabilities.

With the integration of GroupSense, Cognyte will deliver an end-to-end intelligence lifecycle, facilitating data collection, threat detection, mitigation support, and strategic risk insights. Both companies advocate for a hybrid intelligence model that merges automated processes with expert human analysis, aiming to empower clients in transforming intelligence into actionable outcomes without overwhelming them with the need for large in-house teams.

The acquisition underscores Cognyte’s commitment to actionable intelligence. GroupSense’s Chief Technology Officer, Adam Bregenzer, expressed enthusiasm about the merger, stating that their combined expertise will continue to provide high-level insights into OSINT, as well as deep and dark web threats.