Palo Alto Networks Completes $300M Acquisition of Koi Security

The cybersecurity giant expands its portfolio with the purchase of the San Francisco-based startup.

Apr. 14, 2026 at 4:37pm

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A minimalist, high-contrast studio photograph featuring a sleek, metallic cybersecurity device, a laptop, and circuit boards arranged elegantly on a clean, monochromatic background, symbolizing the abstract concepts of corporate strategy and technology in the security industry.Palo Alto Networks' strategic acquisition of Koi Security expands its cloud security portfolio and strengthens its position as a leading cybersecurity provider.Palo Alto Today

Palo Alto Networks, Inc. has completed its acquisition of Koi Security Inc., a San Francisco-based cybersecurity startup, for $300 million in cash and replacement awards. The deal closed on April 14, 2026, after Palo Alto Networks first announced the agreement in February.

Why it matters

The acquisition allows Palo Alto Networks to bolster its cybersecurity offerings and expand its presence in the growing market for cloud-based security solutions. Koi Security's technology and talent will be integrated into Palo Alto Networks' existing products and services.

The details

Under the terms of the deal, Palo Alto Networks acquired Koi Security, a startup founded in 2020 that provides cloud-native security solutions, from a group of shareholders. The total consideration includes $300 million in cash and replacement awards, subject to certain adjustments. The acquisition is expected to close in Palo Alto Networks' second half of fiscal 2026, pending regulatory clearance and other closing conditions.

  • Palo Alto Networks announced the acquisition agreement on February 16, 2026.
  • The acquisition closed on April 14, 2026.

The players

Palo Alto Networks, Inc.

A leading cybersecurity company that provides firewall, cloud security, and other security solutions to enterprises and government agencies.

Koi Security Inc.

A San Francisco-based startup that provides cloud-native security solutions to customers.

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What they’re saying

“This acquisition strengthens our cloud security capabilities and aligns with our strategy to deliver comprehensive security solutions for our customers.”

— Nikesh Arora, Chairman and CEO of Palo Alto Networks

What’s next

Palo Alto Networks plans to integrate Koi Security's technology and talent into its existing product portfolio, further enhancing its cloud security offerings.

The takeaway

The acquisition of Koi Security demonstrates Palo Alto Networks' continued focus on expanding its cybersecurity capabilities, particularly in the growing cloud security market. The deal allows the company to bolster its product suite and strengthen its position as a leading provider of comprehensive security solutions.