Palo Alto Networks to acquire CyberArk in $25 billion deal

Palo Alto Networks will take over Israeli identity security provider CyberArk in a deal valued at roughly $25 billion.

The California-based cybersecurity company will pay shareholders $45 apiece for 2.2005 shares of CyberArk, representing a 26% premium to its share price Friday. The deal is expected to close during Palo Alto Networks’ fiscal year 2026.

Shares of Palo Alto fell more than 6% before the bell Wednesday, building on a 5% loss from Tuesday. CyberArk’s stock dipped slightly.

“Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for Identity Security is now,” Palo Alto CEO and chairman Nikesh Arora said in a release Wednesday.

Blockbuster cybersecurity deals have been a force in the mergers and acquisitions market in 2025 after a relatively slow period for dealmaking. In March, Google shelled out $32 billion for cloud security startup Wiz in its biggest acquisition ever.

Palo Alto Networks intends to use the deal to officially penetrate the identity security market and improve its multi-layer offering for customers, the company said.

He added that CyberArk offers a “foundational technology” necessary in the AI world.

CyberArk, which went public a little over a decade ago, creates identity software tools that grant employees access to platforms and applications. Its biggest competitors in the space include Okta and Microsoft.

As artificial intelligence advances, these tools have become more critical to protecting businesses against cyber and ransomware threats.

Since taking the helm of the company in 2018, Arora has bolstered the cybersecurity provider’s offerings and swelled its market value to roughly $130 billion.

This year, Palo Alto bought startup Protect AI for an undisclosed amount to improve its AI tools. The company acquired Talon Cyber Security, Dig Security and Zycada Networks in 2023.

The Wall Street Journal reported Tuesday that both companies had discussed a potential deal, sending shares of CyberArk skyrocketing more than 13%.

– CNBC’s Jordan Novet and Ari Levy contributed to this article.