By Pesach Benson • September 29, 2026
Jerusalem, 29 September, 2026 (TPS-IL) — A cyber intelligence company founded by former Israeli Prime Minister Ehud Barak and veterans of an elite intelligence unit is set to go public through a proposed $1.25 billion merger with a U.S. special purpose acquisition company (SPAC).
Paragon Solutions, now the main business within Virginia-based cyber firm REDLattice, said it has signed a definitive agreement to merge with Nasdaq-listed Bold Eagle Acquisition Corp. The deal values the combined company at $1.25 billion before the new capital is raised.
The transaction includes $335 million in committed financing, led by U.S. investment firm Loomis, Sayles & Co. Existing investors AE Industrial Partners and Eagle Equity Partners are also participating, including a $60 million common-stock investment.
Barak founded Paragon alongside senior veterans of the Israel Defense Forces’ 8200 intelligence unit, including former unit commander Brig. Gen. (res.) Ehud Schneorson and his deputy, Idan Nurick. Unit 8200 is Israel’s principal military intelligence unit specializing in signals intelligence and cyber operations.
Barak, one of Israel’s most decorated soldiers, served as the IDF’s chief of staff from 1991 to 1995 before entering politics. He was prime minister from 1999 to 2001 and defense minister from 1999 to 2001 and 2007 to 2013.
Paragon was acquired by U.S. private equity firm AE Industrial Partners for $900 million in late 2024 and subsequently merged with REDLattice. Paragon now accounts for about 85% of the combined company’s revenue.
The group generated $267 million in revenue over the past 12 months, with Paragon contributing more than $200 million. Revenue increased 29% from the previous year. The company has approximately 750 employees, including 650 in Israel and the remainder in the United States.
The proposed merger is intended to help the company expand beyond its traditional intelligence business and pursue larger government contracts.
Paragon does not publicly identify its customers, saying it works with liberal democratic governments in Western Europe, the United States and the Pacific region. The University of Toronto’s Citizen Lab reported that the company served Australia, Canada, Cyprus, Denmark and Singapore in 2025.
The company has faced scrutiny over some of its government contracts. It stopped providing services to Italy following revelations involving the surveillance of Italian journalists. It also previously held a contract with U.S. Immigration and Customs Enforcement, which the Department of Homeland Security confirmed to NPR had ended.
AE Industrial’s 2024 acquisition included $500 million paid upfront, with another $400 million tied to Paragon meeting specified business targets.
