Palo Alto Networks has announced a definitive agreement to acquire Israeli identity security firm CyberArk in a deal valued at approximately $25 billion.
The transaction values CyberArk at a 26% premium over its closing share price on Friday and is anticipated to close during Palo Alto Networks’ 2026 fiscal year.
The announcement follows a Wall Street Journal report on Tuesday that the two companies were in acquisition talks, which caused CyberArk’s shares to surge by more than 13%. Following the official confirmation on Wednesday, Palo Alto Networks’ stock fell more than 7% in pre-market trading, adding to a 5% loss from the previous day, while CyberArk’s shares dipped 2%.
Nikesh Arora, CEO and chairman of Palo Alto Networks, stated that the move aligns with the company’s strategy of entering markets at their “inflection point.” “We believe that moment for Identity Security is now,” Arora said, adding that CyberArk provides a “foundational technology” essential in an AI-driven world. The acquisition is intended to formally establish Palo Alto Networks in the identity security market and enhance its multi-layered security offerings for customers.
CyberArk, a publicly traded company for over a decade, develops identity software that controls employee access to corporate platforms and applications. The importance of such tools has grown as advancements in artificial intelligence create new cyber and ransomware threats for businesses.
The deal marks another significant merger in the cybersecurity sector in 2025, following Google’s record $32 billion acquisition of cloud security startup Wiz in March.
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