Palo Alto Networks announced on April 14 2026 that it has completed the acquisition of Koi Security Inc., a startup founded in 2024 that specializes in securing non‑binary software assets such as scripts, AI training datasets, and code‑editor plug‑ins. The deal, originally agreed on February 16 2026, is valued at approximately $400 million in cash and replacement awards, a figure that aligns with the most consistently cited valuation in reputable sources.
The acquisition adds Koi’s agentic endpoint security technology to Palo Alto Networks’ Prisma AIRS AI security platform and Cortex XDR endpoint suite. By integrating Koi’s capabilities, the company aims to close the gap that AI agents and tools create as “the ultimate insiders” with full system access that traditional controls cannot see. Lee Klarich, Chief Product & Technology Officer, said, “AI agents and tools are the ultimate insiders. They have full access to your systems and data, but operate entirely outside the view of traditional security controls. By acquiring Koi, we will be closing this gap and setting a new standard for endpoint security. We will give our customers the visibility and control required to safely harness the power of AI—ensuring that every agent, plugin, and script is governed, verified, and secure.”
Koi’s founding team, veterans of elite Israeli technology units, raised roughly $48 million before the acquisition. The company’s focus on securing autonomous agents positions Palo Alto Networks at the forefront of a rapidly expanding “agentic AI” threat landscape, where AI systems can autonomously reason, plan, and act with elevated privileges. The acquisition signals the firm’s commitment to platformization—consolidating security functions into integrated offerings—and to maintaining a competitive edge against rivals such as CrowdStrike and Microsoft.
The deal’s premium valuation and the CEO’s personal investment of $10 million in Palo Alto Networks shares shortly after the intent to acquire Koi were announced reflect strong confidence in the company’s AI‑security strategy. These actions underscore the strategic importance of agentic endpoint protection as a new frontier in cybersecurity and suggest that Palo Alto Networks expects significant growth in this segment.
By adding Koi’s technology, Palo Alto Networks expands its AI‑centric security portfolio, strengthens its position in the emerging agentic endpoint protection market, and reinforces its broader strategy of delivering unified, AI‑driven security across the enterprise. The acquisition is expected to accelerate the company’s ability to monetize AI‑security solutions and to capture market share in a space that is becoming increasingly critical for protecting enterprise data and operations.
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