Israeli cyber company Paragon to go public through Nasdaq SPAC merger at $1.25 billion valuation
The company and U.S. partner REDLattice generated $267 million in combined revenue over the past year, up 29%.
Israeli cyber company Paragon is preparing for the next phase of its growth, announcing Monday that it will go public through a merger with a Nasdaq-listed SPAC (Special Purpose Acquisition Company) at a pre-money enterprise value of $1.25 billion.
The deal follows a December 2024 transaction in which U.S. investment firm AE Industrial Partners acquired Paragon and merged it with REDLattice, a U.S. cybersecurity company that serves American defense and government agencies. Israel will continue to serve as the combined company's hub for research, development and innovation.
Paragon and REDLattice generated combined revenue of $267 million in the 12 months ended June 2026, representing a 29% increase from the same period a year earlier. Following the transaction, Paragon will become part of a publicly traded Nasdaq-listed company.
Paragon was founded in 2019 by Israeli intelligence community veterans Idan Nurick, Igor Bogudlov, and Liad Avraham, together with Ehud Schneerson, the former commander of Unit 8200. Among the company's prominent investors is former Prime Minister Ehud Barak.
The company's flagship product is Graphite, a mobile surveillance and espionage system designed to infiltrate applications and collect data. Goldman Sachs and AE Industrial Partners are advising on the transaction.
As part of a public company, Paragon plans to expand its global operations, increase investment in technology, products and artificial intelligence, and pursue strategic acquisitions. The company says the moves are intended to accelerate growth and strengthen its market position.
As stipulated in the 2024 sale of Paragon to AE Industrial Partners, Israel will remain the company's hub for research, development and innovation following completion of the transaction. Israeli technology, expertise and operations will continue to underpin the company's activities and growth.
Paragon said its transition to public-company status will not change its identity or its commitment to operating from Israel. The company also said its work with democratic governments and security and law enforcement agencies, as well as its adherence to Israeli and international regulations and implementation of rigorous control mechanisms, will remain central to its operations.
