Palo Alto's plan to buy Protect AI to bolster its security platform, Truist says

Truist Securities says Palo Alto Networks' PANW.O plan to buy Seattle-based startup Protect AI will bolster PANW's security platform and accelerates its product roadmap in the nascent artificial intelligence security space

PANW says acquisition is expected to close by Q1 2026

Terms of the deal were not disclosed, but Globes, an Israeli business news publication, reported earlier in April that the purchase price is estimated to be between $650 mln to $700 mln - brokerage

Protect AI, which offers a security platform aimed at securing AI applications, closed $60 mln Series B funding round in August 2024

Protect AI CEO, founders, and employees are expected to join PANW once the deal closes - co

Average rating of 54 brokerages covering PANW is "buy" and their median PT is $217.50 - LSEG-compiled data

PANW up 0.5% at $179.88 in morning trading

Up to last close, stock down ~2% this year