The controversial spyware manufacturer Paragon Solutions is set to become a publicly traded company by the end of the year, following a merger with the special purpose acquisition company (SPAC) Bold Eagle Acquisition Corp., which is listed on the Nasdaq exchange. This move is expected to increase transparency regarding Paragon's business activities while also signaling the firm's growing ambitions.
Paragon is currently owned by the Florida-based private equity firm AE Industrial Partners. AE Industrial Partners previously merged Paragon with REDLattice, a cyber defense firm specializing in "lawful intercept" solutions for military, defense, and law enforcement agencies. On Monday, REDLattice announced its combination with Bold Eagle Acquisition Corp.
The deal is anticipated to close around the end of the year. Once finalized, Paragon will begin trading on Nasdaq under the REDLattice umbrella. For the twelve-month period ending in June, Paragon and REDLattice reported a combined revenue of $267 million, marking a 29% year-over-year increase.
Andy Boyd, CEO of REDLattice, stated that the transaction provides the necessary capital and public market currency to accelerate organic growth, expand the product portfolio, and pursue strategic mergers and acquisitions in related mission-critical capabilities. He emphasized the company's commitment to its government customers.
The development was initially reported by CTech, an arm of the Israeli news outlet Calcalist. Paragon's research and development hub remains in Israel, despite its acquisition by AE Industrial Partners.
Paragon has faced scrutiny in the past. In January 2025, WhatsApp disclosed that Paragon spyware, known as Graphite, had been used to target approximately 90 of its users. In the subsequent weeks, several journalists, human rights workers, and other members of civil society reported that their devices had been targeted with the same spyware.
Analysts suggest that the decision to go public reflects the spyware vendor's ambition and investor confidence. As a publicly listed company on Nasdaq, Paragon will be subject to public disclosure requirements through SEC filings, which is expected to enhance transparency and accountability. Shareholders will gain levers such as proxy votes and divestment options to influence the company's behavior. However, some observers note that for policymakers aiming to curb the proliferation of such capabilities, this development may not be a positive sign.
