Palo Alto Networks, a global cybersecurity powerhouse, has announced its intention to acquire CyberArk, a leading identity security firm.
The deal marks a significant move as Palo Alto formally enters the identity security market, further broadening its multi-platform cybersecurity strategy.
The acquisition deal, valued at approximately $25bn, includes a cash payment of $45.00 and 2.2005 shares of Palo Alto Networks common stock for each share of CyberArk. This represents a 26% premium over CyberArk’s 10-day average trading price prior to the announcement. The transaction has been unanimously approved by the boards of both companies and is expected to close in the second half of Palo Alto’s fiscal 2026, pending shareholder and regulatory approval.
Palo Alto Networks is known for its comprehensive AI-powered security solutions, including its Strata and Cortex platforms. With this acquisition, it aims to strengthen its offering by integrating identity protection across human, machine, and AI agent identities. CyberArk, meanwhile, is a pioneer in Identity Security and Privileged Access Management (PAM), and has been actively developing a comprehensive platform to address modern enterprise needs.
The acquisition is set to enhance both companies’ capabilities. CyberArk’s expertise in privileged access and identity management will be embedded into Palo Alto’s broader security ecosystem, accelerating platform integration and improving security outcomes. The combined solution will offer identity-aware security controls across the enterprise, crucial for tackling the growing complexity introduced by AI and autonomous agents.
Another critical benefit of the acquisition is its potential to reshape the legacy identity and access management (IAM) market. By applying PAM principles to all identity types—human, machine, and AI—the combined company intends to close security gaps and simplify operations.
The transaction is also expected to be accretive to Palo Alto Networks’ revenue growth and free cash flow per share by fiscal 2028, following synergy realisation. It will also strengthen the company’s position as a one-stop shop for cybersecurity needs, with a single, integrated vendor solution.
Palo Alto Networks CEO Nikesh Arora said: “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. Today, 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, not the ‘IAM fallacy’. CyberArk is the definitive leader in Identity Security with durable, foundational technology that is essential for securing the AI era. Together, we will define the next chapter of cybersecurity.”
CyberArk founder and executive chairman Udi Mokady said: “This is a profound moment in CyberArk’s journey. From the beginning, we set out to protect the world’s most critical assets, with a relentless focus on innovation, trust, and security. Joining forces with Palo Alto Networks is a powerful next chapter, built on shared values and a deep commitment to solving the toughest identity challenges. Together, we’ll bring unmatched expertise across human and machine identities, privileged access, and AI-driven innovation to secure what’s next. This is more than a combination of technologies—it’s an acceleration of the mission we began over two decades ago. I’m incredibly proud of what our team has built and deeply grateful to everyone who made this milestone possible.”
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