Palo Alto Networks is reportedly in discussions to acquire Koi Security, an Israeli endpoint security company, for approximately $400m (NIS1.27bn).

This potential acquisition, as reported by Israeli financial outlet Globes, would be the first involving an Israeli company since Palo Alto Networks’ founder, Nir Zuk, stepped down as chief technology officer (CTO) last year.

The negotiation process has resulted in the signing of a preliminary memorandum of understanding (MoU), indicating that both parties are keen to finalise the transaction.

According to data from PitchBook, Koi Security has accumulated $48m across two funding rounds.

Key stakeholders set to benefit from the acquisition include the company’s founders, who include CEO Amit Assaraf, CTO Idan Dardikman, and chief product officer Itay Kruk, as well as major investors such as Battery Ventures, NFX led by Gigi Levy-Weiss, Picture Capital and Team8.

Additionally, a venture capital fund involving cybersecurity executives such as Dan Amiga, Mickey Bodai, Mike Fey and Rakesh Loonkar is also expected to gain.

Koi Security has developed an advanced software engine that utilises large language models (LLMs) and AI agents. This technology detects malware and identifies vulnerabilities in applications and extensions accessed by developers and organisations.

The engine’s capabilities extend to scanning application stores such as Microsoft’s Visual Studio (VSCode Marketplace) and Edge, Google Chrome Store, NPM, Firefox Store and Homebrew. By leveraging this technology, Koi Security aims to prevent the spread of vulnerabilities within organisational infrastructures.

Palo Alto Networks has been on an acquisition spree in recent times. In November 2025, the company announced an agreement to acquire Chronosphere for $3.35bn.

This acquisition is intended to bolster Palo Alto Networks’ ability to address security needs in modern application environments driven by AI workloads.

Chronosphere’s annual recurring revenue was reported at more than $160m as of September 2025. The deal is expected to conclude in the second half of Palo Alto Networks’ 2026 fiscal year (FY26), contingent on regulatory approvals.

Furthermore, in July 2025, Palo Alto Networks revealed plans to acquire CyberArk for approximately $25bn. Under this agreement, CyberArk shareholders will receive cash alongside shares of Palo Alto Networks stock.

This transaction awaits regulatory approval and shareholder consent and is also expected to close in the latter half of FY26.