US firm buys Israeli spyware company
An American investment group has finalised the acquisition of Israeli spyware company Paragon, a move that highlights the growing role of private firms in cybersecurity and surveillance.

Florida-based AE Industrial Partners has acquired Israeli spyware company Paragon for an estimated $500 million, with reports suggesting the deal could reach up to $900 million. Paragon, a competitor to NSO Group, is known for providing cybersecurity tools to government agencies that it claims meet “enlightened democracy” standards. The acquisition was completed on 13 December and reportedly approved by both US and Israeli officials.
Paragon, founded in 2019 by former Israeli intelligence officers and backed by ex-Prime Minister Ehud Barak, is merging with Virginia-based cybersecurity firm Red Lattice. This move aims to strengthen the firm’s presence in the global surveillance market. The US subsidiary of Paragon recently signed a one-year contract with US Immigration and Customs Enforcement, reflecting its growing footprint in government cybersecurity services.
The acquisition comes amid tightened scrutiny of spyware technologies after allegations of abuse involving competitors like NSO Group. In 2021, the US added NSO to its trade blacklist, citing its misuse in targeting activists and journalists. Paragon, however, positions itself as a provider of ethically guided surveillance tools, limiting its activities to messaging apps and governmental communications.