Ministry of Defense yet to approve Paragon sale

The Israeli Ministry of Defense announced today that the cyber attack company’s sales amounted to $900 million Solutions to the proverb It has not yet obtained the required approval. According to the Ministry of Defense, the company has held preliminary talks regarding the expected sale to US private investment fund AE Industrial Partners, but has not yet submitted a formal report as required by law.

Since the deal concerns a cyber attack company that has developed advanced tools for gathering digital intelligence, Israeli law requires tight oversight of it, especially if it passes into foreign hands. Therefore, any transfer of technology or information to foreign organizations requires a special license and compliance with strict requirements for approval by the Ministry of Defense.

The Ministry of Defense stressed that any decision in this regard will be taken through purely professional means, and that there has been no contact from political or private figures regarding the deal. The Ministry also notes that in recent years the requirements and supervision of Israeli cyber attack companies have become more stringent due to cases of malicious use of similar technologies around the world.

A massive sale of Paragon, which could reach $1 billion, would generate a huge profit for the company’s employees and founders. Under the emerging terms of the deal, half of the acquisition amount – $500 million – will be divided among employees and founders, including former Prime Minister Ehud Barak, who will receive $10-15 million.

Paragon, which was founded four years ago by a group of senior figures in the Israeli intelligence community led by former IDF Intelligence 8200 commander Brig. General (Res.) Ehud Schneurson developed a spy program called “Graphite.” The system specializes in collecting intelligence from encrypted applications, and the company confirms that it only operates in democratic countries and under strict ethical restrictions.

Published by Globes, Israel Business News – en.globes.co.il – on December 19, 2024

© Copyright Globes Publisher Itonut (1983) Ltd., 2024