Palo Alto Networks Acquires Koi in $400 Million Deal

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Palo Alto Networks to Acquire Endpoint Security Firm Koi in $400 Million Deal

Palo Alto Networks has announced a definitive agreement to acquire Koi, an endpoint security company, in a deal reportedly valued at $400 million. Koi, which has raised $48 million in funding, offers a comprehensive endpoint security platform that focuses on protecting various types of software, including applications, code, operating system packages, extensions, AI models, AI agents, and containers.

Koi Platform Features

The Koi platform includes tools for automatic discovery and inventory of software across IT environments, as well as an AI-driven risk engine that analyzes factors such as code changes, runtime actions, update paths, and network outflows for real-time threat detection. Remediation features enable actions such as quarantining risky elements, reverting versions, and notifying owners. Additionally, a supply chain gateway component curates incoming software from platforms like GitHub and Hugging Face.

Acquisition Rationale

Palo Alto Networks is acquiring Koi for its advanced endpoint security technology, which is expected to enhance the company’s Prisma AIRS AI security platform and Cortex XDR endpoint security solution. The acquisition aims to provide significant visibility into the AI attack surface, improving security policy and malware protection.

“AI agents and tools have unfettered access to systems and data, yet operate outside the scope of traditional security controls,” said Lee Klarich, Chief Product and Technology Officer at Palo Alto Networks. “By acquiring Koi, we will bridge this gap and set a new standard for endpoint security, giving our customers the visibility and control required to safely harness the power of AI and ensure that every agent, plugin, and script is governed, verified, and secure.”

Recent Headlines and Acquisition History

Koi has recently made headlines for its analysis of attacks and vulnerabilities impacting software developers. This acquisition marks Palo Alto Networks’ fourth major purchase in the past year, following the acquisition of observability platform Chronosphere for $3.35 billion, identity security giant CyberArk for $25 billion, and AI security firm Protect AI for reportedly over $500 million.