- Cognyte Software (NASDAQ:CGNT) to sell its Situational Intelligence solutions, which are part of Cognyte’s Threat Intelligence Analytics offering, to the Volaris Group for $47.5M plus a performance based earn-out, if and to the extent earned.
- The divested assets include products and intellectual property, customer contracts and employees.
- Upon closure, Cognyte will receive $47.5M in cash with a customary holdback to secure customary post-closing price adjustments and indemnification claims subject to release following the later of 180 days after the closing and settlement of the customary price adjustments.
- In addition, Cognyte may receive earn-out payments in cash of up to ~$35.0M, net of certain earn-out related expenses, subject to the achievement by the divested assets of certain performance metrics over three years after the closing.
- With the move, other than some transition services for a limited period of time, Cognyte will not be involved in operating the assets and the achievement of the earn-out is not in Cognyte’s control.
- The deal is expected to close in Cognyte’s Q4.
- Shares of CGNT are up 6.4% premarket.