Israeli spyware company NSO is mulling a merger with Israeli cyber intelligence company Fifth Dimension. Sources close to the negotiations have told "Globes" that talks have been carried out under the radar for some time and that leaked information about the possible acquisition of Fifth Dimension by NSO could torpedo the deal.
NSO specializes in tracking individuals through smartphone spyware, which in the past has led to allegations that the Israeli company has violated human rights. Only last week US whistleblower Edward Snowden blasted NSO on the matter when interviewed in his Russian hideout. NSO has estimated annual revenue of $350 million and has in the past been valued at $1 billion.
Fifth Dimension has developed a tracking and intelligence system for use by law enforcement agencies and security forces and is in the initial stages of international marketing. The company's chairman is former IDF chief of staff Benny Ganz.
NSO is owned by Francisco Partners which several months ago was reportedly seeking to sell it for about $1 billion, possibly to Verint Systems Inc. (Nasdaq: VRNT). Blackstome was also reportedly in talks to buy 40% of NSO.
NSO and Fifth Dimension declined to comment on the reports.
Published by Globes, Israel business news - en.globes.co.il - on November 11, 2018
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