Spyware maker NSO Group confirms acquisition by US investors

The Israeli spyware firm NSO Group has officially announced its acquisition by a U.S. investment consortium, as confirmed by spokesperson Oded Hershowitz to TechCrunch. The acquisition, which involves an investment of several tens of millions of dollars, grants the American group controlling ownership of the company. This development follows a report from Calcalist, revealing that a group led by Hollywood producer Robert Simonds has finalized the purchase of NSO Group, although specific investment amounts and investor identities remain undisclosed. Hershowitz emphasized that this investment does not alter the company's operational or regulatory oversight, asserting that NSO's headquarters and core functions will continue to be governed by Israeli authorities, including the Ministry of Defense. In light of this deal, NSO's co-founder and executive chairman, Omri Lavie, is expected to step away from his role, though he did not provide comments when reached for further clarification. The acquisition has stirred concern among experts, particularly given NSO's contentious history. The company has faced extensive scrutiny from organizations such as Citizen Lab and Amnesty International, which have documented instances of NSO’s software being utilized to surveil journalists, activists, and human rights advocates across various countries, including Hungary, India, and Mexico. Despite NSO's claims that its products are not intended for use against U.S. phone numbers, the firm was implicated in targeting U.S. officials abroad in 2021, leading to its designation on the U.S. Commerce Department's Entity List, which restricts American firms from engaging with NSO. John Scott-Railton, a senior researcher at Citizen Lab, expressed his apprehension regarding the acquisition, questioning the trustworthiness of Simonds in overseeing a company with a history of compromising American interests. He noted, "NSO has made efforts to enter the U.S. market, aiming to sell its technology to local law enforcement. Such tools should not be accessible to Americans or undermine constitutional rights." NSO Group has undergone several ownership transitions since its inception by founders Niv Karmi, Shalev Hulio, and Omri Lavie. The group was previously owned by U.S. private equity firm Francisco Partners and has seen shifts in management and control over the years, including a recent return of Lavie as majority owner in 2023.