TL;DR
Reports say Palo Alto Networks is considering a roughly $400 million purchase of Israeli security start-up Koi, which raised $48 million last year. Palo Alto declined to comment on rumors; sources say speculation followed CEO Nikesh Arora's recent visit to Tel Aviv.
What happened
Media reports surfaced that Palo Alto Networks may be weighing a roughly $400 million acquisition of Koi, an Israeli cybersecurity start-up that raised $48 million last year. Palo Alto told The Register it does not comment on rumor and speculation. A person close to the company said the Koi story is one of several rumors that emerged after CEO Nikesh Arora visited Tel Aviv last month, where he met about 1,600 local employees and engaged with teams from CyberArk, a company Palo Alto is negotiating to buy. Koi bills itself as an endpoint software security vendor that "scans, governs, and monitors self-provisioned enterprise software at scale," and was founded by three former members of the IDF's Unit 8200 who say they developed an extension that could bypass many security environments. Palo Alto has been active on the M&A front, closing its Protect AI deal in July and announcing purchases including CyberArk and Chronosphere last year.
Why it matters
- An acquisition of Koi would extend Palo Alto's footprint into endpoint and self-provisioned software governance.
- The reported interest follows a high-profile CEO visit to Israel, underscoring that region's role in cybersecurity deal flow.
- Palo Alto's recent string of deals shows continued M&A-driven expansion of its product and talent base.
- Further consolidation could reshape competitive dynamics among enterprise security and identity vendors.
Key facts
- Reported potential price for Koi: about $400 million (reported).
- Koi raised $48 million in funding last year.
- Palo Alto's official response to the report: it does not comment on rumor and speculation.
- A person close to Palo Alto said the Koi report is one of several rumors following CEO Nikesh Arora's Tel Aviv visit.
- During the visit, Arora met with roughly 1,600 employees in Israel and with teams at CyberArk.
- Koi describes its product as endpoint software security that scans, governs, and monitors self-provisioned enterprise software.
- Koi was founded by three former members of the IDF's Unit 8200 who say they rapidly prototyped an extension that could bypass many security environments.
- Palo Alto completed its purchase of Protect AI in July; the Protect AI team and technology underpin the company's PrismaAIRS product.
- In July Palo Alto announced a planned $25 billion acquisition of CyberArk; the deal terms are $45 cash plus 2.2 Palo Alto shares per CyberArk share and it is expected to close in the second half of fiscal 2026.
- In November Palo Alto announced a planned acquisition of Chronosphere, described as a next-generation observability platform aimed at AI-era workloads.
What to watch next
- Whether Palo Alto or Koi will make any official announcement confirming an acquisition (not confirmed in the source).
- Progress, approvals and timing for Palo Alto's announced CyberArk acquisition, which the company expects to close in the second half of fiscal 2026.
- Any disclosed plans for integrating acquired teams and technology into Palo Alto's products and services (not confirmed in the source).
Quick glossary
- Endpoint security: Security solutions that protect end-user devices such as laptops, desktops, and mobile devices from threats.
- M&A (Mergers and Acquisitions): Corporate transactions in which companies buy, sell, or combine with other businesses to build scale, capabilities, or market share.
- Observability: Tools and practices that help monitor and analyze system behavior, performance, and reliability, often across distributed applications.
- IDF Unit 8200: A unit of the Israel Defense Forces focused on signals intelligence and cybersecurity; many Israeli tech founders have backgrounds there.
Reader FAQ
Is Palo Alto buying Koi?
Not confirmed in the source; media reports say the company is considering a roughly $400 million purchase, and Palo Alto declined to comment on rumors.
How much funding has Koi raised?
Koi reportedly raised $48 million last year.
What did CEO Nikesh Arora do in Israel?
He visited Tel Aviv, met with about 1,600 employees there, and met teams from CyberArk, according to the report.
What is the status of Palo Alto's CyberArk deal?
Palo Alto announced a planned $25 billion acquisition of CyberArk; the offer is $45 cash plus 2.2 Palo Alto shares per CyberArk share and the company expects it to close in the second half of fiscal 2026.
SECURITY Playing Koi: Palo Alto isn't saying if it will buy security start-up CEO Nikesh Arora's trip to Tel Aviv last month sparked rumors. O'Ryan Johnson Mon 5 Jan 2026 // 18:06 UTC Palo…
Sources
- Playing Koi: Palo Alto isn't saying if it will buy security start-up
- Decentralized Masters hits 87.6% in BaFin audit
- Security Alerts Index – Western Networks Inc.
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