Palo Alto Networks in talks to buy Israeli co Koi Security for $400m

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Exclusive: Palo Alto Networks is in talks to buy Israeli endpoint security company Koi Security for about $400 million, "Globes" has learned. If the acquisition goes ahead this would be the first deal for an Israeli company since Palo Alto Network’s founder Nir Zuk stepped down last year as CTO.

Koi has raised only $48 million over two rounds, according to PitchBook, and among the biggest beneficiaries will be the company’s founders - CEO Amit Assaraf, CTO Idan Dardikman and CPO Itay Kruk, alongside the company's main investors: Battery Ventures, Gigi Levy-Weiss' NFX, Team8, and Picture Capital, and the venture capital fund of cybersecurity industry executives - Dan Amiga, Mike Fey, Mickey Bodai and Rakesh Loonkar - whose activities were first reported by "Globes."

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The deal has not yet closed but a preliminary memorandum of understanding has been signed while the parties are still negotiating to finalize the details.

Over the past two years, Assaraf, Dardikman and Kruk have developed a software engine that uses large language models (LLM) and AI agents to detect malware and vulnerabilities in applications and extensions that can be downloaded by software developers and organizations, thereby helping to detect vulnerabilities in applications and prevent them from spreading to computers in the organization. Among other things, Koi's engine scans application and extension stores such as Microsoft's Visual Studio (VSCode Marketplace), Microsoft's Edge, the Chrome store (Google), the Firefox store, NPM and Homebrew.

No response from the companies has been forthcoming.

Published by Globes, Israel business news - en.globes.co.il - on January 4, 2026.