Today it's a much different company. It operates a dozen subsidiaries and employs 1,200 people in over 40 countries, selling wireless infrastructure, software for public transit ticketing systems, wastewater treatment, and more. But at the ISDEF Expo, an event held last June to show off Israeli technology to potential buyers from foreign security forces, the Mer Group's representatives were only promoting one thing: surveillance products sold by the company's security division.

The Mer Group's evolution from cutting metal to electronic snooping reflects a larger shift in the Israeli economy. Technology is one of the main sectors in Israeli industry. And Israeli firms with ties to intelligence, like the Mer Group, are using their expertise to market themselves internationally. The company's CEO, Nir Lempert, is a 22-year veteran of Unit 8200, the Israeli intelligence unit often compared to the National Security Agency, and is chairman of the unit's alumni association.