Another Israeli vendor may be getting the acquisition treatment as Palo Alto Networks looks to be eyeing Tel Aviv-founded Koi Security.

A report from Ctech by Calcalist claimed the U.S. security giant is looking to shell out $400 million on the endpoint security vendor.

Palo Alto CEO Nikesh Arora was rumored to have met the firm among other startups while checking in on Palo's most recent Israel investment, CyberArk, which the company announced it would acquire for $25 billion last year in a deal representing 2025's second-largest acquisition overall.

Founded in January 2024, Koi Security specializes in endpoint security posture management (ESPM), in which endpoint devices are inspected through automation for vulnerabilities such as misconfigurations and missing patches.

The firm has already raised $48 million to date, with a $38 million Series A round last September seeing investment from Battery Ventures, Team8, Picture Capital, NFX, and Cerca Partners. Clients to date include OpenAI, Fireblocks, and FHLBank Dallas.

The rumored deal follows Palo Alto's $3.35 billion acquisition of U.S. observability platform Chronosphere in November, which showed Arora and company weren't quite done after the CyberArk mega-deal.

Palo Alto's current endpoint services come via its Cortex XDR platform, which was most recently bolstered acquisition-wise when it snapped up incident response firm Crypsis in 2020.

Neither Koi Security nor Palo Alto responded to Calcalist's request for comment on the purported deal.