American investors have acquired controlling ownership of NSO Group, the controversial Israeli spyware maker confirmed Friday. The deal, valued at tens of millions of dollars, transfers control of the surveillance technology company to a U.S. investment group while keeping its operations under Israeli regulatory oversight.
Acquisition Details and Ownership Transition
NSO spokesperson Oded Hershowitz confirmed to TechCrunch that “an American investment group has invested tens of millions of dollars in the company and has acquired controlling ownership.” The announcement followed a report from Israeli tech news outlet Calcalist identifying Hollywood producer Robert Simonds as leading the acquisition group. Hershowitz declined to specify the exact investment amount or identify all investors involved in the transaction.
The deal marks a significant ownership transition for NSO, with co-founder and executive chairman Omri Lavie ending his involvement with the company. This represents the latest chapter in NSO’s complex ownership history, which has included periods under U.S. private equity firm Francisco Partners and European private equity firm Novalpina Capital. Despite the American acquisition, Hershowitz emphasized that “the company’s headquarters and core operations remain in Israel” and it continues to be “fully supervised and regulated by the relevant Israeli authorities, including the Ministry of Defense.”
Controversial History and Global Scrutiny
NSO Group has faced intense international criticism for years over how governments use its Pegasus spyware. Researchers at the University of Toronto’s Citizen Lab and organizations like Amnesty International have documented dozens of cases where NSO’s government clients targeted journalists, human rights defenders, and political dissidents across multiple countries. Their investigations revealed targeting operations in Hungary, India, Mexico, Morocco, Poland, Saudi Arabia, and the United Arab Emirates.
The company faced particularly severe backlash in 2021 when it was discovered that approximately a dozen U.S. government officials abroad had been targeted with NSO technology. This revelation contradicted NSO’s long-standing claims that its spyware was designed to avoid targeting U.S. phone numbers. The incident prompted the U.S. Commerce Department to place NSO on its Entity List, prohibiting American companies from conducting business with the spyware maker.
Security Concerns and Expert Reactions
Digital rights experts expressed serious concerns about the acquisition and its implications for American security. John Scott-Railton, a senior researcher at Citizen Lab who has investigated NSO spyware abuses for a decade, told TechCrunch: “NSO is a company with a long history of going against American interests and supporting the hacking of American officials. In what world can such a person be trusted to properly oversee a company like NSO Group?”
Scott-Railton highlighted broader worries about NSO’s persistent efforts to enter the U.S. market, noting: “My real concern is that NSO has strenuously tried to enter the United States and sell their product to American police forces in U.S. cities. This dictator tech does not belong anywhere near Americans, or our constitutionally protected rights or freedoms.” These concerns come as NSO has actively sought removal from the U.S. Entity List, most recently in May 2025 with assistance from a lobbying firm connected to the Trump administration.
Future Implications and Regulatory Landscape
The acquisition occurs amid ongoing global debates about surveillance technology regulation and export controls. NSO’s placement on the U.S. Entity List in 2021 represented a significant blow to the company’s business prospects, limiting its access to American technology and markets. Despite this restriction, the company has maintained operations through international clients and continued development of its surveillance capabilities.
The involvement of American investors raises questions about potential changes to NSO’s business practices and client vetting processes. However, the company’s statement emphasizing continued Israeli regulatory oversight suggests operational continuity. The deal also highlights the complex intersection of private investment, national security concerns, and human rights considerations in the global surveillance technology market. As digital rights organizations continue monitoring NSO’s activities, the acquisition may prompt renewed scrutiny from regulators and lawmakers concerned about foreign investment in sensitive security technology sectors.
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