Palo Alto Networks to Acquire KOI for Approximately $400 Million

U.S.-based cybersecurity leader Palo Alto Networks has agreed to acquire Israeli startup KOI in a deal valued at approximately $400 million. The acquisition underscores continued global demand for Israeli innovation in cybersecurity and artificial intelligence.

Founded in 2024 by veterans of elite Israeli technology units, KOI develops advanced endpoint security solutions designed for modern enterprise environments, with a focus on cloud-based architectures and AI-driven systems. The company has raised approximately $48 million to date from investors including Team8, NFX, Battery Ventures, and Picture Capital.

For Palo Alto Networks, the move represents another strategic expansion of its cybersecurity platform, particularly as enterprises accelerate the deployment of AI agents and autonomous systems. Securing endpoints and managing emerging AI-related risks have become critical priorities for organizations worldwide.

The transaction joins a series of major acquisitions by Palo Alto Networks in recent years and highlights Israel’s continued position as a key hub for cybersecurity innovation and high-value exits.