Merger-and-acquisition activity led by large companies is heating up in the global security market at the start of the year.

Palo Alto Networks is pursuing an acquisition of Israeli cybersecurity startup Koi Security, SiliconAngle reported on Jan. 4, citing Israeli local media outlet Calcalist. The deal is valued at about $400 million, the report said.

Palo Alto Networks is moving to acquire Koi Security as part of efforts to strengthen AI-based security solutions, it said.

Palo Alto Networks CEO Nikesh Arora recently visited Israel and assessed several security startups, including Koi Security. Koi Security was founded by security experts who previously served in the Israel Defense Forces and has technology that detects software supply chain security vulnerabilities in real time through AI-based security solutions.

Koi Security's AI-based security engine, Wings, analyses software component risks in real time. OpenAI, Cambia Health Solutions, Jump Trading and Fireblocks are among its customers.

Palo Alto Networks has continued an aggressive M&A push to strengthen AI and integrated security capabilities. It announced it would acquire AI security company Protect AI for $500 million in April last year, CyberArk for $25 billion in July, and Chronosphere for $3.35 billion in November.

There has been a report that Cisco is reviewing an acquisition of security asset management startup Axonius.

According to Calcalist, Cisco is pursuing the acquisition of Axonius for $2 billion.

Founded in 2017, Axonius provides a platform that manages and secures connected devices within companies. It supports IT and security teams in managing assets in an integrated way and is characterised by managing attack surfaces by linking with existing security tools. It can operate without installing agents and can detect unidentified assets that are not caught by existing security systems.

In connection with this, Axonius said, "We have never held acquisition talks with Cisco."