Spyware maker NSO Group confirms acquisition by US investors | TechCrunch

TITLE: US Investors Acquire Controversial Spyware Maker NSO Group

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NSO Group Confirms Acquisition by American Investors

Israeli surveillance technology company NSO Group has confirmed that a United States investment group has acquired controlling ownership of the controversial spyware maker. The confirmation came through NSO spokesperson Oded Hershowitz, who revealed that American investors have poured tens of millions of dollars into the company.

Deal Details and Ownership Structure

While Hershowitz declined to specify the exact investment amount or identify the investors, the acquisition follows reports from Israeli tech news outlet Calcalist indicating that a group led by Hollywood producer Robert Simonds had agreed to purchase the surveillance technology manufacturer. The deal is reportedly valued in the tens of millions of dollars.

Despite the change in ownership, NSO emphasized that the company will maintain its Israeli operations and regulatory compliance. “This investment does not mean that the company is moving out of Israeli regulatory or operational control,” Hershowitz stated. “The company’s headquarters and core operations remain in Israel. It continues to be fully supervised and regulated by the relevant Israeli authorities, including the Ministry of Defense.”

Leadership Changes and Previous Ownership

As part of the acquisition agreement, NSO’s co-founder and executive chairman Omri Lavie will end his involvement with the spyware maker. This marks another chapter in NSO’s complex ownership history, which has seen multiple transfers of control:

  • Originally founded by Niv Karmi, Shalev Hulio, and Omri Lavie
  • Acquired by US private equity firm Francisco Partners in 2014
  • Lavie and Hulio retook control in 2019 with European private equity backing
  • California-based Berkeley Research Group took over management in 2021
  • Lavie regained majority ownership in 2023

Controversial History and Security Concerns

NSO Group has faced significant international scrutiny throughout its existence. Multiple research organizations, including the University of Toronto’s Citizen Lab and Amnesty International, have documented numerous cases where NSO’s government clients targeted journalists, dissidents, and human rights defenders across multiple countries.

The company faced particularly severe consequences in 2021 when it was discovered targeting approximately a dozen US government officials abroad. This led to the US Commerce Department banning American companies from trading with NSO by placing the company on the Entities List.

Expert Concerns About the Acquisition

John Scott-Railton, a senior researcher at Citizen Lab who has investigated NSO spyware abuses for a decade, expressed serious concerns about the acquisition. “NSO is a company with a long history of going against American interests and supporting the hacking of American officials,” Scott-Railton stated.

He further emphasized his apprehension about NSO’s attempts to enter the US market: “My real concern is that NSO has strenuously tried to enter the United States and sell their product to American police forces in US cities. This dictator tech does not belong anywhere near Americans, or our constitutionally protected rights or freedoms.”

Additional context about this acquisition and NSO Group’s controversial history can be found through detailed reporting from technology monitoring sources.

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