KnowBe4 to acquire Egress for enhanced AI-driven cybersecurity

KnowBe4, a global leader in security awareness training, has announced its intention to acquire the intelligent email security provider Egress. Integrating Egress' advanced cloud email security solution will enable KnowBe4 to offer the largest, most advanced AI-driven cybersecurity platform for managing human risk.

Egress' Intelligent Email Security suite offers AI-enabled security tools designed to defend organisations against increasingly sophisticated email cybersecurity threats. Numerous global organisations face the challenge of managing behavioural-based data breaches, as 74 percent of incidents involve a human element, according to Verizon's Data Breach Investigations Report. By acquiring Egress, KnowBe4 intends to deliver a singular platform that will use dynamic threat intelligence to provide AI-based security and training that adapts relative to risk.

Stu Sjouwerman, CEO of KnowBe4, remarked: "The future of security is personalised AI-driven controls and real-time coaching. By providing a single platform from KnowBe4 and Egress, our customers will benefit from differentiated aggregate threat detection to stay ahead of evolving cyber threats and foster a strong security culture. As integration partners for over a year with strong philosophical and cultural alignment, this acquisition is a natural progression for both companies to take human risk management and cloud email security to the next level."

Tony Pepper, CEO of Egress, added: "KnowBe4 and Egress have a shared vision of delivering tailored and relevant security to each employee. One of the biggest challenges organisations face is accurately identifying who the next source of compromise is – and why. By combining intelligence and analytics from integrated applications, companies can gain valuable insights across their entire cyber ecosystem, allowing them to focus on the risks that matter most."

This acquisition announcement follows notable achievements for both companies thus far in 2024. KnowBe4 recently introduced its AI-native platform, Artificial Intelligence Defense Agents (AIDA), which implements advanced AI agents to expedite effectiveness and speed. Previously, KnowBe4 was honoured as a Top Software Winner by G2 and a winner of Energage's Top Workplaces USA for 2024. Concurrently, Egress launched its AI-powered Automated Abuse Mailbox early this month and garnered numerous awards, including Security Innovation of the Year (Computing Security Excellence Awards), Best Email Security Solution, Best Data Leak Prevention Solution (SC Awards Europe) and Best Place to Work in the UK (Great Places to Work 2024).

The transaction between KnowBe4 and Egress, backed by FTV Capital and AlbionVC, is anticipated to close in the upcoming months, depending on standard closing conditions and requisite regulatory approvals. Citi provided Egress' financial advice for the deal exclusively, with Orrick, Herrington & Sutcliffe LLP operating as legal counsel.