Francisco Partners Acquires 70% Stake in NSO Group for $130 Million

San Francisco-based private equity firm Francisco Partners acquires a 70% controlling stake in NSO Group from its founders for approximately $120-130 million. The acquisition represents a major influx of Western capital into the Israeli surveillance technology sector and marks the beginning of NSO Group’s transformation from a startup into a global commercial spyware powerhouse.

Under Francisco Partners’ ownership, NSO Group expands its government client base internationally, selling Pegasus spyware to dozens of countries including Mexico, Saudi Arabia, UAE, Hungary, and Poland. The private equity investment enables NSO to scale its operations and marketing while maintaining the position that it sells only to governments for legitimate law enforcement purposes.

The acquisition exemplifies how American private equity enables surveillance capitalism, providing capital and business expertise to companies whose products are later documented as tools of authoritarian repression. Francisco Partners would hold its stake for five years before the founders bought back control in 2019 at a valuation just under $1 billion, representing a significant return on the 2014 investment despite growing international controversy over Pegasus abuses.