Palo Alto Networks to Acquire CyberArk in $25 Billion Deal

Palo Alto Networks, a leader in cybersecurity, announced today that it has agreed to buy CyberArk, a company known for identity security, for about $25 billion. This move is expected to change the cybersecurity industry significantly.

The deal marks Palo Alto Networks’ strategic entry into the Identity Security market, establishing it as a new core pillar in the company’s multi-platform strategy.

The acquisition will combine Palo Alto Networks’ AI-powered security platforms with CyberArk’s renowned leadership in Privileged Access Management (PAM). This integration aims to extend robust identity protection across all types of users, human, machine, and the emerging class of autonomous AI agents.

Under the terms of the agreement, CyberArk shareholders will receive $45.00 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk share they hold. This represents a 26% premium over CyberArk’s recent average stock price.

Palo Alto Networks Acquires CyberArk

Nikesh Arora, Chairman and CEO of Palo Alto Networks, described the timing as an inflection point for Identity Security. “Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for Identity Security is now,” Arora stated.

He emphasized that the rise of AI and the proliferation of machine identities necessitate a security model where every identity has the appropriate level of privilege controls. “CyberArk is the definitive leader in Identity Security with durable, foundational technology that is essential for securing the AI era,” he added.

The strategic combination is expected to deliver significant benefits, including the acceleration of Palo Alto Networks’ platform strategy by integrating CyberArk’s capabilities into its Strata and Cortex platforms.

This will provide customers with a unified solution to close security gaps and simplify operations. Furthermore, the merger is poised to disrupt the traditional Identity and Access Management (IAM) market by applying security-first PAM principles to every identity.

A key focus of the acquisition will be securing agentic AI. As organizations increasingly deploy autonomous AI agents, these entities become the ultimate privileged users. The combined company will provide the essential framework for securing this new workforce by enforcing just-in-time access and least privilege principles.

Udi Mokady, Founder and Executive Chairman of CyberArk, hailed the deal as a “profound moment” in the company’s journey. “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,” Mokady said. “Together, we’ll bring unmatched expertise across human and machine identities, privileged access, and AI-driven innovation to secure what’s next.”

The transaction has been unanimously approved by the boards of both companies and is expected to close in the second half of Palo Alto Networks’ fiscal year 2026, pending regulatory approvals and a vote by CyberArk shareholders.

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