Palo Alto Networks in Talks to Acquire Israeli Cybersecurity Startup Koi for $400 Million

It was announced that Palo Alto Networks is in advanced negotiations to acquire Israeli cybersecurity startup Koi for approximately $400 million. A preliminary memorandum of understanding has been signed, and both parties are reportedly finalizing the details of the transaction.

Founded in 2024 by Amit Assaraf, Idan Dardikman, and Itay Kruk, Koi develops enterprise endpoint protection and software supply chain security tools. The company’s main product, Supply Chain Gateway, functions as a central checkpoint for software packages and extensions, offering inventory management, real-time risk analysis, and automatic blocking of unsafe code. Its AI engine, known as Wings, evaluates and isolates potentially harmful software components.

Koi was created after its founders demonstrated a security vulnerability in the Visual Studio Code marketplace, which led to the development of their current platform. The startup has raised $48 million across two funding rounds from investors including Team8, NFX, Battery Ventures, and Picture Capital. Its solutions are deployed across major enterprises and protect more than 500,000 endpoints worldwide.

If completed, the acquisition would continue Palo Alto Networks’ expansion through strategic deals, following its recent purchases of CyberArk, Chronosphere, and Protect AI. The company has been actively investing in AI-driven cybersecurity technologies to strengthen its endpoint and identity protection offerings.