Shares of Cognyte Software (NASDAQ: CGNT) were up in morning trading on Wednesday as the analytics software company announced that it would divest its Situational Intelligence solutions, a part of its Threat Intelligence Analytics offering.
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The company will sell its Situational Intelligence solutions business to the Volaris Group for $47.5 million in cash plus “performance-based earn-out, if and to the extent earned.”
This divestiture is expected to close by early next year.
Elad Sharon, Cognyte’s CEO commented, ” Our strategy is to continue to address a broad set of security use cases which require sophisticated investigative analytics software. Given the overall environment this year, we decided to increase our focus on fewer use cases in order to accelerate growth and improve margins, and we believe we will benefit from sharpening our focus.”
