AE Industrial Partners Acquires Israeli Spyware Firm

AE Industrial Partners, a U.S.-based private equity firm, has acquired Israeli spyware company Paragon for an initial payment of $500 million, potentially rising to $900 million contingent on business performance. Founded in 2019 by former Israeli intelligence officers, Paragon specializes in offensive cyber technologies and has been reported to have a more ethical operation compared to its competitor, NSO Group. The deal, which was approved by both U.S. and Israeli officials, will see Paragon merged with Virginia-based cybersecurity firm Red Lattice, aiming to expand its market presence in allied nations. Paragon's flagship product, Graphite, is designed to penetrate secure messaging applications, raising ethical concerns despite the company's claims of operating strictly within democratic frameworks. The acquisition includes significant financial benefits for Paragon's employees and co-founders, with substantial payouts derived from the deal's initial payment. This acquisition marks a notable shift in the cyber defense landscape, bridging Israeli and U.S. cybersecurity sectors.