NSO Group Acquired by US Investors - Spyware Firm Confirmed

NSO Group Acquired by U.S. Investment Group

NSO Group, the controversial Israeli spyware manufacturer, has officially announced its acquisition by a U.S.-based investment group. This confirmation was provided directly to TechCrunch.

According to NSO spokesperson Oded Hershowitz, the investment totals tens of millions of dollars and results in a change of controlling ownership.

Deal Confirmation and Reporting

The announcement follows a report published by the Israeli tech news outlet Calcalist on Friday. Calcalist indicated that a consortium spearheaded by Robert Simonds, a prominent Hollywood producer, had reached an agreement to purchase the surveillance technology company.

Hershowitz refrained from disclosing the precise investment figure or identifying the specific investors involved in the transaction.

Continued Israeli Oversight

Despite the change in ownership, Hershowitz emphasized that the company will remain under Israeli regulatory and operational control. NSO Group’s headquarters and primary functions will continue to be based in Israel.

The company will still be subject to oversight and regulation by Israeli authorities, including the Ministry of Defense and the established Israeli regulatory framework.

(Following the initial communication, Hershowitz attempted to retract his statements “off the record.” However, as no prior agreement regarding such terms was established, TechCrunch is publishing the provided responses.)

Previous Acquisition Attempts

Reports surfaced in 2023, as detailed by The Guardian, that Simonds and a colleague were considering a potential bid to gain control of NSO Group through their investment firm. This earlier attempt did not ultimately come to fruition.

Leadership Changes

Calcalist’s reporting suggests that Omri Lavie, the co-founder and executive chairman of NSO Group, will be stepping down from his role as part of this new agreement.

Contacted for comment, Lavie did not immediately respond. Similarly, neither Simonds nor STX Entertainment, his Hollywood production company, provided a statement in response to inquiries.

A Shift in Ownership for NSO Group

From its inception, NSO Group has been consistently embroiled in significant controversy.

Concerns Regarding Surveillance Practices

For years, investigations conducted by organizations like Citizen Lab at the University of Toronto and Amnesty International have revealed numerous instances of NSO’s governmental clients utilizing its spyware to target individuals.

These targets have included journalists, political dissidents, and human rights advocates across various nations, such as Hungary, India, Mexico, Morocco, Poland, Saudi Arabia, and the United Arab Emirates.

Previous U.S. Restrictions and Attempts to Lift Them

NSO Group previously asserted that its spyware was not intended for use on U.S. phone numbers, a strategy likely aimed at facilitating entry into the American market.

However, in 2021, the company was discovered targeting approximately a dozen U.S. government officials while they were abroad.

Following this incident, the U.S. Commerce Department imposed restrictions on American companies, prohibiting trade with NSO by adding the spyware developer to the U.S. Entities List.

Since then, NSO has actively sought removal from this blocklist, most recently in May 2025, employing a lobbying firm with connections to the Trump administration.

Expert Concerns About the Acquisition

John Scott-Railton, a senior researcher at Citizen Lab with a decade of experience investigating NSO spyware abuses, expressed his apprehension regarding the acquisition to TechCrunch.

“Given NSO’s history of actions contrary to U.S. interests and its involvement in hacking American officials, questions arise about the trustworthiness of those now overseeing the company,” Scott-Railton stated, referencing Simonds.

He further elaborated, “My primary concern lies in NSO’s persistent efforts to penetrate the U.S. market and sell its products to American law enforcement agencies.

This type of technology is incompatible with the rights and freedoms constitutionally guaranteed to Americans.”

A History of Changing Ownership

The ownership structure of NSO Group has undergone several transitions.

The company was initially established by Niv Karmi, Shalev Hulio, and Omri Lavie.

In 2014, it was acquired by U.S. private equity firm Francisco Partners.

Subsequently, in 2019, Lavie and Hulio regained control with the assistance of European private equity firm Novalpina.

Berkeley Research Group, based in California, assumed management of the fund in 2021.

Most recently, in 2023, Lavie once again took control of NSO, becoming the majority owner.