The Israeli-based NSO Group, globally recognized for its controversial Pegasus spyware, has confirmed its acquisition by a U.S.-led investment group. The deal, which involves an injection of tens of millions of dollars, grants controlling ownership of the firm to the American investors, according to company spokesperson Oded Hershowitz.
Strategic Ownership Shift and Operational Status
Reports from the Israeli tech outlet Calcalist indicate that the investment group is led by Hollywood producer Robert Simonds. While NSO declined to disclose the specific financial terms or the identities of the investors, the company emphasized that the transaction does not alter its regulatory standing.
“The company’s headquarters and core operations remain in Israel,” Hershowitz stated. “It continues to be fully supervised and regulated by the relevant Israeli authorities, including the Ministry of Defense.” Under the terms of this transition, the involvement of NSO co-founder and executive chairman Omri Lavie is expected to conclude.
A History of Global Controversy
NSO Group has faced intense scrutiny for over a decade. Digital rights organizations, including Citizen Lab and Amnesty International, have documented widespread misuse of Pegasus software. Government clients have allegedly utilized the tool to target journalists, human rights activists, and political dissidents across nations such as Saudi Arabia, India, Mexico, and Hungary.
The company’s relationship with the United States has been particularly volatile. Despite claims that its software was designed to avoid targeting U.S. phone numbers, NSO was implicated in 2021 for the targeting of U.S. government officials stationed abroad. Consequently, the U.S. Commerce Department placed the firm on its Entities List, effectively banning American companies from conducting business with them.
Concerns Over U.S. Market Entry
Since the blacklisting, NSO has engaged in aggressive lobbying efforts—including connections to the Trump administration—to regain access to the U.S. market. John Scott-Railton, a senior researcher at Citizen Lab, expressed significant apprehension regarding the new ownership structure.
“NSO is a company with a long history of going against American interests,” Scott-Railton noted. “My real concern is that NSO has strenuously tried to enter the United States and sell their product to American police forces. This dictator tech does not belong anywhere near Americans, or our constitutionally protected rights.”
Ownership Volatility
The acquisition marks another chapter in the complex corporate history of NSO Group:
- 2014: Acquired by U.S. private equity firm Francisco Partners.
- 2019: Founders Shalev Hulio and Omri Lavie regained control with Novalpina Capital.
- 2021: Management was taken over by the California-based Berkeley Research Group.
- 2023: Lavie re-emerged as the majority owner prior to this latest transition.
Previous attempts by Simonds to secure control of the firm, first reported in 2023, had previously failed to materialize before this successful acquisition.