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

Paragon Solutions Overview

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

IsraelTel Aviv

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.

Paragon Solutions acquisition details
AcquirerDateTypePrice
  • AE Industrial Partners
17 Dec 2024PE buyout$900M

Paragon Solutions Funding History

Paragon Solutions has raised 1 funding round.

Paragon Solutions funding rounds
DateStageInvestorsDeal Summary
Oct 2020Undisclosed stageRed Dot Capital PartnersRed 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

Investors in Paragon Solutions by funding rounds participated
InvestorHQRoundsRoleFirst check

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Paragon Solutions Competitors

Paragon Solutions competitors include listed companies like GB Group and Asiainfo Security, and private ones like Defense Unicorns, Malwarebytes, Shift5 and Cape.

Public and private companies comparable to Paragon Solutions
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Defense UnicornsUnited StatesColorado Springs, COPrivate$30M-$1B33.3x
MalwarebytesUnited StatesSan Jose, CAPrivate$100M-$625M6.3x
Shift5United StatesUnited StatesPrivate--$591M-
GB GroupUnited KingdomUnited KingdomPublicly listed$383M($45M)$471M1.5x
CapeUnited StatesWashington, DCPrivate--$900M-
Asiainfo SecurityChinaChinaPublicly listed$1.2B($11M)$918M1.3x

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 FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
BeiJing Certificate$126M($12M)6.7x-(70.4x)-
Asiainfo Security$1.2B($11M)1.4x1.3x(147.4x)399.4x
Dexterra Group$744M$77M1.4x1.3x13.3x10.7x
Global Security Experts$70M$14M11.4x9.8x54.9x-
OneSpan$243M$57M3.1x3.0x13.2x10.1x
Rapid7$860M$63M1.4x1.5x19.5x7.3x
Mitek Systems$180M$37M4.1x3.7x19.8x11.0x
Open Up Group$1.1B$122M0.9x0.9x8.1x8.0x

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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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