Palo Alto Networks (NASDAQ: PANW) saw its stock decline 3.7% on Tuesday after the company disclosed plans to acquire Koi, described by Palo Alto Networks as a pioneer in Agentic Endpoint Security. The purchase price was not made public.
The acquisition is intended to confront what Palo Alto Networks characterizes as a "dangerous, unmanaged attack surface" created by AI agents and tools that operate on corporate endpoints. According to the company, these AI-driven systems frequently possess broad access to sensitive information and operate with unrestricted permissions while evading conventional security controls.
Once the deal closes, Palo Alto Networks said Koi’s capabilities will be integrated into its Prisma AIRS platform, the firm’s AI security solution. The company also indicated the technology will be used to strengthen its Cortex XDR endpoint security product by improving visibility into attack surfaces tied to AI activity.
"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," said Lee Klarich, Chief Product & Technology Officer at Palo Alto Networks. The company framed the transaction as addressing a distinct and growing security category it says is needed as AI reshapes workplace productivity.
In its statement, Palo Alto Networks contrasted the new threat profile with the approach of traditional security products, which tend to emphasize prevention of malicious files. The companies noted that contemporary AI agents do more than introduce files - they actively read, write and move data, which creates different vectors for risk.
Amit Assaraf, CEO and Co-Founder of Koi, commented on the move: "We founded Koi to secure the next frontier of risk. In an agentic-first world, traditional solutions are blind. Joining forces with Palo Alto Networks will allow us to scale our technology to the world’s largest organizations."
The companies said the transaction is subject to customary closing conditions. Financial terms of the deal were not disclosed.
This development touches enterprise cybersecurity and artificial intelligence governance, with potential implications for endpoint security vendors and large organizations deploying AI agents on corporate devices.