Palo Alto Networks to Acquire CyberArk for $25 Billions

31 July, 2025

The move will mark a formal entry into Identity Security, establishing it as a core pillar of the company's cybersecurity strategy

photo above: Nir Zuk of Palo Alto Networks (left), and Udi Mokadi, founder of CyberArk

Palo Alto Networks and CyberArk announced that they have entered into a definitive agreement under which Palo Alto Networks will acquire CyberArk in a combined cash and stocks deal. This is one of the cyber mergers in the world. Under the terms of the agreement, CyberArk shareholders will receive $45.00 in cash and 2.2 shares of Palo Alto Networks common stock for each CyberArk share. This represents an equity value of approximately $25 billion for CyberArk and a 26% premium to the unaffected 10-day average of the CyberArk stocks.

This strategic move will mark Palo Alto Networks’ formal entry into Identity Security, establishing it as a core pillar of the company’s multi-platform strategy. Combining CyberArk’s long-standing leadership in Identity Security and Privileged Access Management (PAM) with Palo Alto Networks’ comprehensive AI-powered security platforms, will extend privileged identity protection to all identity types including human, machine, and the new wave of autonomous AI agents.

Palo Alto Networks was founded in 2005 by its Chief Technology Officer, Nir Zuk. The company provides AI-powered security solutions across network, cloud, security operations and AI, more than 70,000 organizations worldwide. CyberArk was founded in Israel by its Executive Chairman Udi Mokadi, and is considered a leader in Identity Security solutions.

Inflection Point in Cyber Security

Nikesh Arora, Chairman and CEO of Palo Alto Networks, explained: “Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for Identity Security is now. This strategy has guided our evolution from a next-gen firewall company into a multi-platform cybersecurity leader. The rise of AI and the explosion of machine identities have made it clear that the future of security must be built on the vision that every identity requires the right level of privilege controls. CyberArk is the definitive leader in Identity Security with durable, foundational technology that is essential for securing the AI era.”

The transaction has been unanimously approved by the Boards of Directors of both Palo Alto Networks and CyberArk, and is expected to close during the second half of Palo Alto Networks’ fiscal 2026, subject to regulatory clearances and approval by CyberArk shareholders. The transaction is expected to be immediately accretive to Palo Alto Networks revenue growth and gross margin. Palo Alto Networks expects the transaction to be accretive to free cash flow per share in fiscal year 2028, following the first full year of realization of synergies.

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