Blackstone Group is in advanced talks to acquire 40% of the Israeli cybersecurity firm NSO Group for $400 million, Israel’s Calcalist business newspaper reported on Sunday.
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Another investor, ClearSky, is expected to join Blackstone as a secondary buyer, for 10%, Calcalist said.
Founded in 2009 by Omri Lavie and Shalev Hulio, NSO develops software that can target mobile phones to gather information.
Private equity firm Francisco Partners acquired a majority stake in NSO in 2014 for $120 million.
An NSO spokesman said he could not confirm the report.
Calcalist said Francisco Partners could achieve a partial exit via the deal that was four times its initial investment. Six weeks ago NSO distributed a $230 million dividend that will not be included in the deal’s value, the newspaper reported.
Under the deal, Francisco Partners will own 40% of NSO; Blackstone and ClearSky together will hold 40%; the founders will have 6% each and the company’s 500 employees will hold the remaining 8%.
Blackstone was not immediately available to comment. ClearSky did not immediately respond to a Reuters’ request to comment.