Palo Alto Networks Eyes Acquisition of Israeli Startup Koi for $4 Million
Palo Alto Networks, a prominent player in the cybersecurity landscape, is eyeing an acquisition of the Israeli startup Koi for approximately $400 million. This potential acquisition highlights Palo Alto’s aggressive growth strategy following its recent purchasing sprees.
Palo Alto Networks’ Acquisition Strategy
The decision to pursue Koi comes after recent acquisitions, including a notable $25 billion deal for CyberArk in 2025 and other significant purchases such as Chronosphere and Protect AI. The negotiations with Koi align with the increasing demand for enhanced cybersecurity solutions.
About Koi and Its Founders
Koi was established in 2024 by Amit Assaraf, Idan Dardikman, and Itay Kruk, who previously worked for Sygnia and Zscaler. The startup has raised a total of $48 million, largely from a $38 million Series A funding round completed in September.
- Amit Assaraf: CEO and founder of real estate startup Landa
- Idan Dardikman: CTO
- Itay Kruk: CPO
Driven by a desire to address significant security vulnerabilities, Koi developed innovative solutions after discovering a critical gap in the VSCode Marketplace.
Innovative Technology and Market Impact
Koi launched a fake theme extension named “Darcula Official,” which exposed a serious security flaw by infiltrating over 300 firms globally in just one week. This incident underscored the urgent need for improved enterprise security solutions.
The startup’s flagship product, Supply Chain Gateway, acts as a central security checkpoint for software, offering essential features such as:
- Software inventory management
- Real-time risk analysis
- Automated policy enforcement
- Proactive blocking of malicious code
Central to Koi’s platform is an AI engine called Wings. This engine distinguishes software components and tests them in isolated environments, identifying threats often overlooked by conventional scanners.
Global Reach and Future Prospects
Koi currently secures over 500,000 endpoints worldwide. Its technology is actively deployed in Fortune 50 companies, leading technology firms, and significant financial institutions, demonstrating a robust demand for its security solutions.
If the acquisition is finalized, it would not only represent a significant milestone for Koi’s founders and investors but also underline Palo Alto Networks’ commitment to advancing cybersecurity technology in response to evolving threats.
