Ehud Barak's spyware startup Paragon acquired for up to $900M
Israeli offensive cyber company Paragon will be acquired by the U.S.-based private equity fund AE Industrial Partners for an initial payment of $500 million, with an additional $400 million contingent on meeting business milestones. Despite the acquisition, Paragon will remain an Israeli company, adhering to regulatory guidelines set by Israel’s Defense Ministry and the U.S. government.
Paragon’s management team and employees will stay in place, with plans to expand into new markets, launch innovative products, and recruit approximately 150 additional employees in the coming months.
The deal will significantly benefit Paragon’s founders, including former Prime Minister Ehud Barak, company chairman Ehud Schneorson (a former commander of IDF Intelligence Unit 8200), CEO Idan Nurick, Igor Bogdalov and Liad Avraham. The founders are expected to collectively receive about 30% of the initial payment, or approximately $150 million. Barak, holding a small equity share, is estimated to receive around $15 million. Employees will also benefit, collectively receiving about $100 million through the company’s generous stock option policy. The remaining funds will go to the company's investors.