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Tel Aviv: NSO Group Ltd., the scam-ridden spyware company that is in danger of defaulting on its loans, is exploring options that include winding up its controversial Pegasus unit and selling the entire company, according to people familiar with the matter.
There have been talks with several investment funds about moves that include refinancing or outright sales, the people who asked not to identify as discussed are private. People said the company called Moelis & Co. for assistance. consultants from the U.S., and lenders are getting advice from attorneys for Wilkie Farr and Gallagher.
Potential new owners include two US funds that have discussed controlling and shutting down Pegasus, one of the people said. Under that scenario, the fund will invest about $200 million in fresh capital, to turn the information behind Pegasus into strictly defensive cybersecurity services, and perhaps to develop the Israeli company’s drone technology, one of the people said. he said.
A spokesman for the Herzliya-based NSO declined to comment. A representative for New York-based Moelis said the company declined to comment. A representative for Wilkie Farr did not immediately respond to requests for comment. Elements of the potential transaction were previously reported by DataWire.
Pegasus software can track a user’s mobile phone, and its misuse has put NSO at the center of high-profile privacy and human rights abuse cases. The product was allegedly supplied to governments that used it to spy on political dissidents, journalists and human rights activists. Pegasus was too Reported Mobile phones of at least nine State Department employees have been used to hack in recent months.
The company has said that it sells the technology to law enforcement and government agencies to prevent crime and terrorism, and has terminated contracts with customers who abuse it. US Department of Commerce however Blacklisted NSO, who said in November attempt to reverse the verdict“Given that our technologies support US national security interests and policies.”
Apple Inc. has sued NSO, for preventing the spyware firm from using its products and services, and said it would begin notifying users targeted by state-sponsored hacking.
US sanctions put additional pressure on NSO, which needs to pay off about $450 million in debt, just two years after a management buyout that valued the company at about $1 billion. Moody’s Investors Service said last month increased risk The company will violate the terms of its loan.
A loan with a face value of more than $300 million that NSO issued in 2019 business At an all-time low bid of 70 cents on the dollar in November. It was quoted at 50 cents a dollar on Monday, according to people familiar with the price.
The closure of Pegasus could make NSO a much smaller and potentially undervalued company, as the unit accounts for about half of NSO’s revenue. The company expects to record about $230 million in sales this year, one of the people said. 8% less Compared to 2018- bloomberg
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