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- Paragon Solutions
Paragon Solutions Acquisition, Valuation, Funding & Investors
Paragon Solutions was acquired by AE Industrial Partners for $900M in December 2024.
Paragon Solutions acquisition price
$900M
Acquired by AE Industrial Partners · Dec 2024
Key investors in Paragon Solutions
Red Dot Capital Partners
About Paragon Solutions
Paragon Solutions is a provider of digital surveillance technologies for smartphone and internet monitoring used by law enforcement and intelligence agencies. Based in Tel Aviv, Israel, the company develops tools for real-time interception of communications on iOS and Android devices, including WhatsApp and Telegram traffic. Paragon Solutions' platform extracts geolocation data, contacts, and media files, deployed in operations across Europe and the Middle East. Its solutions integrate with existing forensic labs for encrypted app decryption.
Founded
2019
HQ
Status
Acquired
Customer focus
B2G
Revenue model
Licensing, Subscription
Valuation
$900M (acquired Dec 2024)
Paragon Solutions Acquisition
Paragon Solutions was acquired by AE Industrial Partners for $900M on 17 December 2024.
Paragon Solutions, an Israeli cybersecurity firm founded in 2019 by former IDF Unit 8200 members including executive chairman Ehud Schneorson, CEO Idan Nurick, CTO Igor Bogudlov, and VP of Research Liad Avraham, develops Graphite, a spyware tool that extracts data from encrypted apps like WhatsApp, Telegram, and Signal via cloud backups. The company positions itself as an ethical alternative to NSO Group, restricting sales to 34 democratic countries and avoiding intrusive spy tools, which helped it gain U.S. market traction including a $2 million contract with ICE's Homeland Security Investigations. Former Prime Minister Ehud Barak holds a stake, aiding U.S. connections, while major investors include Battery Ventures and Red Dot Capital Partners. AE Industrial Partners, a Florida-based private equity firm focused on infrastructure and security investments, acquired Paragon in December 2024. Reports vary on terms: Calcalist cites $500 million upfront with potential to reach $900 million via growth milestones; Globes reports $450 million initial payment (20% to 400 employees, 30% to five founders, 50% to VCs) also scaling to $900 million. Jefferies advised Paragon; the deal followed months of negotiations and closed Friday. AE plans to merge Paragon with portfolio company Red Lattice (U.S. subsidiary REDLattice), retaining key founders, to build a major defense tech player amid rising demand. The acquisition occurs against competitive dynamics where Paragon differentiated from sanctioned rivals like NSO via ethical branding and Barak's ties, despite IDF 8200 tensions and U.S. regulatory scrutiny—ICE's contract faced a White House hold in October 2024 over Biden's 2023 spyware procurement limits before reactivation post-deal. European Investment Fund indirectly backed Paragon via Red Dot. This mirrors Western PE interest in Israeli spyware, following Francisco Partners' 2014 NSO investment.
| Acquirer | Date | Type | Price |
|---|---|---|---|
| 17 Dec 2024 | PE buyout | $900M |
Paragon Solutions Funding History
Paragon Solutions has raised 1 funding round.
| Date | Stage | Investors | Deal Summary |
|---|---|---|---|
| Oct 2020 | Undisclosed stage | Red Dot Capital Partners | Red Dot Capital Partners II invested in Paragon Solutions in October 2020. A March 2026 report by digital-rights organization 7amleh attributes the date and fund participation to an EIB spokesperson describing the European Investment Fund's indirect exposure through a fund-of-funds commitment. Paragon was founded in 2019 and develops cyber-intelligence software for government customers. Red Dot's official portfolio identifies Paragon as a recent exit and describes the company as building cyber-intelligence software for democratic countries. The company was later acquired by AE Industrial Partners in December 2024, an ownership event already represented separately in the database. |
Who has invested in Paragon Solutions?
1 investor has backed Paragon Solutions across its funding rounds, including Red Dot Capital Partners.
Paragon Solutions Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
This data is available for Pro users. Sign up to see all 1 Paragon Solutions investors. Start Free Trial | ||||
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Start Free TrialParagon Solutions Competitors
Paragon Solutions competitors include listed companies like GB Group and Asiainfo Security, and private ones like Defense Unicorns, Malwarebytes, Shift5 and Cape.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Private | $30M | - | $1B | 33.3x | ||
| Private | $100M | - | $625M | 6.3x | ||
| Private | - | - | $591M | - | ||
| Publicly listed | $383M | ($45M) | $471M | 1.5x | ||
| Private | - | - | $900M | - | ||
| Publicly listed | $1.2B | ($11M) | $918M | 1.3x |
Paragon Solutions Public Comps
Paragon Solutions is no longer listed, but its public comps include BeiJing Certificate, Asiainfo Security, Dexterra Group, Global Security Experts, OneSpan, Rapid7, Mitek Systems, Open Up Group, BrightView and Eastcompeace Tech.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $126M | ($12M) | 6.7x | - | (70.4x) | - | |||
| $1.2B | ($11M) | 1.4x | 1.3x | (147.4x) | 399.4x | |||
| $744M | $77M | 1.4x | 1.3x | 13.3x | 10.7x | |||
| $70M | $14M | 11.4x | 9.8x | 54.9x | - | |||
| $243M | $57M | 3.1x | 3.0x | 13.2x | 10.1x | |||
| $860M | $63M | 1.4x | 1.5x | 19.5x | 7.3x | |||
| $180M | $37M | 4.1x | 3.7x | 19.8x | 11.0x | |||
| $1.1B | $122M | 0.9x | 0.9x | 8.1x | 8.0x | |||
This data is available for Pro users. Sign up to see all Paragon Solutions competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Paragon Solutions
| When was Paragon Solutions founded? | Paragon Solutions was founded in 2019. |
| Where is Paragon Solutions headquartered? | Paragon Solutions is headquartered in Tel Aviv, Israel. |
| Is Paragon Solutions publicly listed? | No, Paragon Solutions was acquired by AE Industrial Partners in December 2024. |
| Who acquired Paragon Solutions? | Paragon Solutions was acquired by AE Industrial Partners in December 2024. |
| How much was Paragon Solutions acquired for? | Paragon Solutions was acquired for $900M in December 2024. |
| What was Paragon Solutions' last funding round? | Paragon Solutions' last funding round was a undisclosed-stage round in October 2020. |
| Who are Paragon Solutions' investors? | Paragon Solutions' investors include Red Dot Capital Partners. |
| Which companies are comparable to Paragon Solutions? | Companies comparable to Paragon Solutions include Defense Unicorns, Malwarebytes, Shift5, GB Group, Cape and Asiainfo Security. |
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