Palo Alto Networks is set to acquire Israeli identity security firm CyberArk in a deal valued at around $25 billion.
Under the agreement, CyberArk shareholders will receive $45 in cash and 2.2005 shares of Palo Alto stock for each share they own. The transaction is expected to close during Palo Alto’s fiscal year 2026.
Palo Alto’s stock dropped 5.6% on Wednesday, following a 5% decline the day before, while CyberArk’s share price fluctuated.
Palo Alto CEO Nikesh Arora said the company is strategically entering the identity security space at a pivotal moment. He emphasized CyberArk’s potential to transform the market and address emerging security challenges, particularly those related to AI, saying the move positions Palo Alto for future success over the next 12 to 18 months.
This acquisition is part of a broader trend in 2025, with major cybersecurity mergers and acquisitions gaining momentum. Earlier this year, Google made headlines by purchasing Wiz, a cloud security startup, for $32 billion—the largest acquisition in its history. Palo Alto plans to leverage this deal to expand into the identity security sector and enhance its services. Arora noted that Palo Alto’s size and resources could help scale CyberArk’s technology faster.
CyberArk, which went public over ten years ago, specializes in identity management software that controls employee access to systems and applications. It competes with firms like Okta and Microsoft. As AI continues to evolve, these tools are increasingly vital in defending organizations against cyberattacks and ransomware.
Since becoming CEO in 2018, Arora has significantly expanded Palo Alto’s capabilities and boosted its market value to approximately $120 billion. In 2023, the company acquired Talon Cyber Security, Dig Security, and Zycada Networks. Earlier this year, it also bought Protect AI to strengthen its artificial intelligence offerings.