Palo Alto Networks entered into a definitive agreement on 16 February to acquire Koi Security, a privately held Israeli endpoint posture management company, for total consideration of US$300m in cash and replacement awards.
Why Palo Alto Networks, Inc. is buying Koi Security Ltd.
Palo Alto said the acquisition would expand its security operations platform. Koi has built an engine that uses large language models and AI agents to detect malware and vulnerabilities in applications and extensions distributed through stores such as the VS Code Marketplace, the Chrome and Firefox stores, NPM and Homebrew.
Deal terms and financing
The US$300m figure, disclosed in Palo Alto's 10-Q for the quarter to 31 January 2026, is subject to adjustments. Globes, which reported that no financial details were disclosed at announcement, estimated the price at about US$400m. Koi had raised US$48m in two rounds from investors including Battery Ventures, NFX and Team8, according to PitchBook data cited by Globes.
Regulatory approvals and timing
Closing was subject to conditions including regulatory clearance. Palo Alto's annual report for the year to 31 July 2026 states that it completed the acquisition on 14 April 2026.
Market context
Koi was founded by chief executive Amit Assaraf, chief technology officer Idan Dardikman and chief product officer Itay Kruk. Palo Alto completed its acquisition of Israeli identity security company CyberArk on 11 February 2026, and it went on to buy Portkey, Embrace and Console later in the year.
