Palo Alto Networks Announces Agreement to Acquire CyberArk, the Identity Security Leader

In a seismic shift set to redefine the cybersecurity landscape, Palo Alto Networks (NASDAQ: PANW) today announced a definitive agreement to acquire CyberArk (NASDAQ: CYBR), the global leader in identity security, in a cash and stock transaction valued at approximately $25 billion. This landmark deal, the largest in Palo Alto Networks’ history, marks its formal entry into the critical identity security market and significantly accelerates its complete platform strategy, particularly in the burgeoning AI era.

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, representing a substantial premium over CyberArk’s recent trading averages. The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the second half of Palo Alto Networks’ fiscal year 2026, subject to regulatory approvals and CyberArk shareholder consent.

This acquisition comes at a pivotal moment, as the rise of artificial intelligence (AI) and the proliferation of machine identities have underscored the urgent need for robust identity security. Nikesh Arora, Chairman and CEO of Palo Alto Networks, emphasized this strategic imperative: “Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for Identity Security is now. CyberArk is the definitive leader in Identity Security with durable, foundational technology that is essential for securing the AI era.”

CyberArk, renowned for its privileged access management (PAM) solutions, helps organizations safeguard sensitive systems by limiting and monitoring access to critical accounts. Its impressive customer roster includes global enterprises such as Carnival Corp, Panasonic, and Aflac. The integration of CyberArk’s capabilities into Palo Alto Networks’ Strata and Cortex platforms is expected to create a unified, AI-powered security solution, offering customers end-to-end protection across human, machine, and the emerging class of autonomous AI agents.

Udi Mokady, Founder and Executive Chairman of CyberArk, echoed the enthusiasm, stating, “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.”

Analysts view this acquisition as a strategic “home run” for Palo Alto Networks, enabling it to broaden its portfolio and solidify its position as an “all-in-one” cybersecurity provider. While Palo Alto Networks’ stock experienced a slight dip following the announcement, the long-term strategic benefits, particularly in addressing AI-driven threats and completing its complete security platform, are widely acknowledged. The deal is expected to be immediately accretive to Palo Alto Networks’ revenue growth and gross margin.