Palo Alto Networks is in talks to acquire Israeli cybersecurity startup Koi for about $400 million, according to Calcalist. Koi has raised $48 million and its platform protects more than 500,000 endpoints.
KEY FACTS
- Deal Palo Alto in talks to buy Koi for about $400 million
- Funding Koi has raised $48 million to date
- Founded 2024 by alumni of the IDF 8200 unit
- Scope Platform protects over 500,000 endpoints
Palo Alto has continued an aggressive acquisition pace after closing a $25 billion purchase of CyberArk and buying Chronosphere and Protect AI. The company’s CEO visited Israel recently while evaluating local startups and assessing how AI changes are reshaping endpoint security.
Koi was founded in 2024 by Amit Assaraf, Idan Dardikman and Itay Kruk. The founders tested a vulnerability in the VSCode Marketplace by creating a fake extension that exfiltrated code and machine details, an experiment that led them to build tools to detect risky extensions and to develop the startup.
The company’s main product, Supply Chain Gateway, acts as a central checkpoint for incoming software and offers inventory management, real time risk analysis, automatic policy enforcement and proactive blocking. An AI engine called Wings classifies components, runs tests in isolated environments and finds threats that traditional scanners miss.
Koi’s investors include Team8, NFX, Battery Ventures and Picture Capital. The platform is deployed across Fortune 50 companies, major financial institutions and large technology firms, demonstrating traction in enterprise environments.
WHY IT MATTERS
An acquisition would expand Palo Alto’s footprint in enterprise endpoint protection at a time when AI driven changes are prompting consolidation of XDR and EDR capabilities. The deal would accelerate integration of proactive software supply chain controls into larger security portfolios.