The American investment company AE Industrial Partners acquired the Israeli spy software development company Paragon for 450-500 million US dollars.
Paragon is primarily known for its *Graphite* product, which can retrieve data from cloud storage as well as penetrate encrypted platforms such as Signal and WhatsApp. Founded by former Israeli intelligence officers, the company has long competed with NSO Group, which developed the *Pegasus* software; unlike NSO, Paragon has been successful in the US market, where its products are used by more than a quarter of the world’s leading security firms.
For example, in October 2024, it was revealed that the company had signed a $2 million contract with the US Immigration and Customs Enforcement (ICE) to provide equipment, licenses and training. Also in December 2022, the New York Times reported on the use of graphite by the US Drug Enforcement Administration (DEA). Of the total amount of the deal, 400 Paragon employees will receive 20%, five co-founders will receive 30%, and venture capital funds, including the American Battery Ventures, will receive 50%. Paragon is not widely known and does not even have an official website. Paragon is one of many Israeli companies working in the cyber surveillance sector. These companies are often the subject of controversy due to alleged human rights abuses and the use of their products to spy on journalists and activists.
The deal demonstrates the continued interest of investment firms in the spyware market. Paragon technology is in high demand as a surveillance solution, especially among US government agencies.
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