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Palo Alto Networks in talks to acquire Koi Security for $400m
Yahoo Finance· 2026-01-05 10:22
Core Insights - Palo Alto Networks is in discussions to acquire Koi Security for approximately $400 million (NIS 1.27 billion), marking its first acquisition of an Israeli company since the founder stepped down as CTO [1] - A preliminary memorandum of understanding (MoU) has been signed, indicating both parties' intent to finalize the transaction [2] - Koi Security has raised $48 million across two funding rounds, highlighting its financial backing and growth potential [2] Stakeholders - Key stakeholders benefiting from the acquisition include Koi Security's founders: CEO Amit Assaraf, CTO Idan Dardikman, and Chief Product Officer Itay Kruk, along with major investors such as Battery Ventures, NFX, Picture Capital, and Team8 [3] - A venture capital fund involving cybersecurity executives is also expected to gain from the acquisition [3] Technology and Capabilities - Koi Security has developed an advanced software engine that utilizes large language models (LLMs) and AI agents to detect malware and identify vulnerabilities in applications [4] - The engine scans application stores like Microsoft's Visual Studio Marketplace, Google Chrome Store, and others, aiming to prevent the spread of vulnerabilities within organizations [5] Strategic Context - Palo Alto Networks has been actively acquiring companies, including a recent agreement to acquire Chronosphere for $3.35 billion, which is expected to enhance its capabilities in addressing security needs in AI-driven application environments [5][6] - The acquisition of CyberArk for approximately $25 billion is also in progress, awaiting regulatory approval and shareholder consent, expected to close in the latter half of FY26 [7]