Cognyte Adds GroupSense in $4M Threat Intelligence Deal

Cognyte’s purchase of a digital risk protection firm led by a former Fortinet account manager will enhance its U.S. cyberthreat intelligence offering, the Israeli company said.

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The Tel Aviv company said buying Arlington, Va.-based GroupSense will bolster Cognyte’s North American footprint, add more state and local government clients to its portfolio and bring together investigative analytics and cyberthreat capabilities. Cognyte will pay $4 million upfront for GroupSense with an additional earn out of up to $5 million, according to the company.

“The addition of GroupSense allows us to extend our market presence and deliver added value to their customers through our AI-driven technology, supporting their efforts to protect their brand and assets more effectively,” Cognyte CEO Elad Sharon said. Company executives weren’t available for an interview.

GroupSense, founded in 2014, employs 33 people and has raised nearly $2 million, including a $1.2 million seed round in December 2016 from IrishAngels, New Dominion Angels and Shawn Carpenter. The company has been led since inception by Kurtis Minder, who previously spent nearly five years as a global account manager at Fortinet developing cloud security service models for service providers.

The U.S. cybersecurity and intelligence market within state and local governments and regulated industries represents a growth frontier for Cognyte, and the acquisition of GroupSense will allow the company to bypass market entry barriers. Some three-quarters of GroupSense’s workforce is based in the United States, while the Cognyte workforce is dispersed throughout Israel, Bulgaria, Romania, Brazil and Cyprus.

How Cognyte Will Benefit From Adding GroupSense

GroupSense provides analyst-backed intelligence using more than 1,000 personas across languages and platforms to engage with threat actors, something Cognyte’s largely automated platform lacked, the company said. This human-in-the-loop model, especially in the context of ransomware negotiation and takedown operations, adds nuance and contextual depth to Cognyte’s analytics, according to Cognyte.

“We’re delivering a powerful combination: a technology-driven CTI platform backed by real-world threat intelligence experience tailored to the needs of CISOs in the U.S. and beyond,” Sharon said in an emailed statement. “This acquisition strengthens our ability to help CISOs surface relevant threats, respond faster and ultimately reduce risk more effectively.”

Minder said the acquisition will enhance GroupSense’s service delivery, broaden threat detection and extend geographic reach, especially by leveraging the company’s R&D capabilities and advanced AI frameworks. GroupSense said the deal will help it integrate with Cognyte’s investigative platforms, automate more elements of its service without losing human oversight and expand internationally.

“Joining Cognyte, a global leader in investigative analytics, with advanced technologies and strong R&D capabilities, is a major milestone for both our company and our customers,” Minder said. “This acquisition enables us to grow our offering, streamline our operations and provide customers with solutions to help protect their digital assets and defend against an ever-evolving threat landscape.”

With GroupSense, Cognyte said it can now offer an end-to-end intelligence lifecycle from data collection and threat detection through to remediation support and strategic risk insights. Both firms champion a hybrid intelligence model that blends automation with expert human analysis, with an emphasis on empowerment to help clients turn intelligence into action without building massive in-house teams.

“Cognyte shares our vision of actionable intelligence and I’m thrilled to be a part of our shared mission,” GroupSense Chief Technology and Product Officer Adam Bregenzer wrote on LinkedIn. “Combining our products and technology will enable us to provide better solutions for our customers and keep us on the forefront; providing the best intel in OSINT, Deep and darkweb threats.”