Palo Alto nears $400M bet of Israeli Koi, first Israel deal post-Zuk — TFN

Palo Alto Networks is reportedly negotiating the acquisition of Israeli endpoint safety startup Koi Safety in a transaction valued at round $400 million. Whereas the deal isn’t but ultimate, a preliminary memorandum of understanding has been signed, signalling critical intent on either side.

A milestone deal after a management shift

If accomplished, the transaction could be Palo Alto Networks’ first acquisition of an Israeli firm since its founder, Nir Zuk, stepped down from his position as chief know-how officer final 12 months. The timing provides weight to the talks, suggesting a renewed urge for food for offers tied carefully to Israel’s deep cybersecurity expertise pool.

Koi Safety’s journey has been comparatively capital-efficient. The corporate raised simply $48 million throughout two funding rounds, but now finds itself on the centre of a possible nine-figure exit. 

The end result would ship sturdy returns for its founders, together with Amit Assaraf, Idan Dardikman, and Itay Kruk, in addition to early backers, together with Battery Ventures, NFX, Team8, Image Capital, and a fund backed by veteran cybersecurity executives.

Securing the software program provide chain

Koi’s enchantment lies in the way in which it tackles a rising weak level in enterprise safety: third-party functions and developer extensions. Over the previous two years, the founding group has constructed a scanning engine designed to uncover malware and hidden vulnerabilities earlier than they unfold inside organisations.

The platform repeatedly inspects common utility and extension ecosystems utilized by builders worldwide, from code marketplaces to browser extension shops and package deal repositories. By figuring out dangerous elements on the supply, Koi’s know-how helps safety groups forestall threats from getting into company environments within the first place, moderately than reacting after injury is finished.

A part of a broader acquisition push

The potential Koi deal would additionally match neatly into Palo Alto Networks’ current run of large-scale acquisitions. In late 2025, the corporate agreed to purchase Chronosphere for $3.35 billion, strengthening its capabilities in trendy, AI-driven utility environments. 

Months earlier, it unveiled plans for a roughly $25 billion acquisition of CyberArk, a transfer that may considerably increase its identification safety footprint.