US Investors to Take Control of Pegasus Maker NSO Group in Multi-Million Dollar Deal

NSO Group's Control Set to Leave Israeli Hands as US Investors Take Over A group of American investors led by Hollywood producer Robert Simonds has agreed to acquire NSO Group, the developer of the Pegasus spyware, in a deal valued at several tens of millions of dollars. The transaction is expected to be signed in the coming days, pending approval from Israel's Defense Export Control Agency (DECA) at the Ministry of Defense. The acquisition marks a significant shift for NSO Group, which has been under Israeli control since its founding. Omri Lavie, the company's founder, had transferred ownership of NSO's shares to a Luxembourg-based holding company in March 2023 as part of a restructuring effort following a share buyback from private equity firm Francisco Partners. According to sources close to the deal, the US investors have agreed to pay tens of millions of dollars for the controlling stake in NSO Group. The exact figure was not disclosed due to confidentiality agreements. Robert Simonds, the lead investor, has extensive experience in the entertainment industry and has produced several successful films and TV shows. "This acquisition represents a significant opportunity for us to invest in a cutting-edge technology company with immense growth potential," said Simonds in an interview. "We believe NSO Group's innovative products will continue to disrupt the cybersecurity landscape, and we're excited to be a part of it." The deal is expected to have a limited impact on NSO Group's operations, as the company has already established itself as a leading developer of spyware solutions for governments and law enforcement agencies worldwide. However, the change in ownership may lead to increased scrutiny from regulatory bodies and human rights organizations, which have raised concerns about the misuse of Pegasus technology. NSO Group's acquisition by US investors marks a significant shift in the global cybersecurity landscape, as American companies increasingly invest in Israeli tech startups. The deal is also seen as a vote of confidence in NSO Group's products and services, despite ongoing controversy surrounding their use. The transaction is expected to be completed within the next few weeks, pending approval from DECA. Once finalized, the US investors will take control of NSO Group, ending Israeli ownership of the company. Background NSO Group has been at the center of several high-profile controversies in recent years, including allegations that its Pegasus technology was used by governments to spy on journalists, activists, and politicians. The company has consistently denied any wrongdoing, stating that its products are designed for legitimate law enforcement purposes only. Market analysts have welcomed the acquisition, citing NSO Group's strong growth prospects and increasing demand for cybersecurity solutions. "This deal is a testament to the strength of NSO Group's technology and its potential for global expansion," said analyst Rachel Lee. "We expect the company to continue growing rapidly under new ownership." The acquisition has also sparked concerns about the implications for Israeli tech startups, which have long relied on government support and funding. Some analysts fear that the loss of control may lead to a decline in investment and innovation in the sector. Current Status The deal is expected to be signed in the coming days, pending approval from DECA. Once finalized, the US investors will take control of NSO Group, ending Israeli ownership of the company. The acquisition marks a significant shift for NSO Group, which has been under Israeli control since its founding. Next Developments As the deal is finalized, NSO Group's new owners are expected to outline their plans for the company's future growth and development. Analysts will be closely watching the company's performance in the coming months, as it navigates increased scrutiny from regulatory bodies and human rights organizations. *Reporting by Yro.*