United States-based private equity firm AE Industrial Partners has acquired Paragon, an Israeli cybersecurity firm specializing in offensive technology.

The deal is worth US$500 million upfront, with the total potentially reaching US$900 million based on future performance milestones.

AE Industrial Partners plans to merge Paragon with its existing portfolio company, Red Lattice, to enhance its presence in the defense technology sector.

The acquisition required regulatory approval from US authorities and Israel’s Ministry of Defense due to the sensitive nature of Paragon’s technology.