Palo Alto Networks to Acquire CyberArk in $25 Billion Cybersecurity Mega Deal
In a major shakeup in the cybersecurity world, Palo Alto Networks has announced plans to acquire Israeli cybersecurity firm CyberArk in a cash-and-stock deal valued at approximately $25 billion.
CyberArk, headquartered in Petach-Tikva, Israel, is best known for its cutting-edge software that secures privileged accounts—those often targeted by sophisticated cyberattacks. Under the terms of the deal, CyberArk shareholders will receive $45 in cash and 2.2005 shares of Palo Alto Networks stock for each CyberArk share they own.
Palo Alto Networks, based in Santa Clara, California, sees this acquisition as a key move into the identity security space. Chairman and CEO Nikesh Arora commented,
“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.”
Industry experts are calling the acquisition a bold and strategic step. Wedbush analyst Dan Ives hailed the deal as a “strategic home run,” noting that Palo Alto is building an “all-in-one shop” to take on rising cyber threats—especially those fueled by artificial intelligence—and integrating that technology into its larger security portfolio.
As part of the announcement, CyberArk also released its latest financials, reporting a 46% jump in revenue for the second quarter and an adjusted profit of 88 cents per share, beating Wall Street expectations.
This move adds to a growing trend of major acquisitions in the cybersecurity space. Just a few months ago, Google revealed its intent to buy cybersecurity firm Wiz for $32 billion, which would mark its largest acquisition to date.
The boards of both companies have unanimously approved the transaction, which is expected to close in the second half of Palo Alto Networks’ fiscal 2026, pending shareholder approval from CyberArk.
Despite the big news, the market reaction was mixed—Palo Alto Networks shares dipped nearly 8%, while CyberArk’s stock fell by 1.8% in early trading.
