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Palo Alto Networks in Talks to Buy Koi Security for About $400 Million

A preliminary memorandum of understanding signals intent behind its push into AI‑driven supply‑chain security.

Overview

  • Israeli outlet Globes, echoed by other reports, says Palo Alto Networks and Koi Security have signed a preliminary MoU, and no final agreement has been announced.
  • Palo Alto Networks declined to comment on the reports, and a person close to the company described them as one of several rumors following CEO Nikesh Arora’s recent Tel Aviv visit.
  • If completed, it would be Palo Alto Networks’ first Israel-related deal since founder Nir Zuk stepped down as chief technology officer last year.
  • Koi Security’s platform uses large language models and AI agents to scan developer and extension ecosystems, including VSCode Marketplace, Chrome Web Store, NPM, Firefox Store and Homebrew.
  • Koi has raised $48 million across two rounds, and the talks come as Palo Alto Networks pursues larger transactions such as the planned Chronosphere ($3.35 billion) and CyberArk (about $25 billion) deals awaiting approvals.