Palo Alto Networks to Acquire CyberArk in $25 Billion Cash and Stock Deal

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: Cheng Xin/Getty Images

In a significant consolidation move in the cybersecurity industry, Palo Alto Networks announced on Wednesday that it will acquire CyberArk Software Ltd. in a cash and stock deal valued at approximately $25 billion.

The acquisition, approved unanimously by both companies’ boards, marks Palo Alto Networks’ latest effort to expand its security platform by entering the identity security market a rapidly growing segment within the cybersecurity sector.

Under the terms of the agreement, CyberArk shareholders will receive $45 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk share they hold.

CyberArk, headquartered in Petach Tikva, Israel, specializes in protecting privileged access accounts and has emerged as a leading player in identity focused cybersecurity solutions.

“Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for identity security is now,” said Nikesh Arora, Chairman and CEO of Palo Alto Networks. “This strategy has guided our evolution from a next-gen firewall company into a multi-platform cybersecurity leader.”

Analysts echoed the strategic importance of the deal. Dan Ives of Wedbush Securities called the acquisition a “strategic home run,” adding that Palo Alto Networks is positioning itself as a “one stop shop” for cybersecurity solutions that are prepared to address rising AI-driven threats.

In addition to the acquisition news, CyberArk reported its second quarter earnings, revealing a 46% year over year revenue growth and adjusted earnings of 88 cents per share, beating analyst expectations.

The deal is expected to close in the second half of Palo Alto Networks’ fiscal year 2026, pending approval from CyberArk shareholders and standard regulatory reviews.

Despite the long term strategic implications, investors reacted cautiously in the immediate aftermath. Shares of Palo Alto Networks (PANW) fell nearly 8% in morning trading, while CyberArk (CYBR) shares slipped 1.8%.

The acquisition follows other major buyouts in the cybersecurity space this year. Notably, Google announced in March that it would acquire cloud security company Wiz for $32 billion, marking its largest acquisition to date.

As cyber threats evolve in complexity and frequency particularly with the rise of AI-driven attacks industry leaders are racing to diversify and fortify their portfolios. The Palo Alto CyberArk deal represents a continuing trend of consolidation aimed at building comprehensive platforms that address threats across multiple attack surfaces.

With identity security playing a critical role in digital defense, this acquisition positions Palo Alto Networks to expand its capabilities and meet the growing demands of global enterprises.