Cybersecurity giant Palo Alto Networks is set to acquire Israeli-based CyberArk in a cash-and-stock deal valued at approximately $25 billion.
CyberArk, headquartered in Petach-Tikva, specializes in software that protects privileged accounts from cyberattacks — a growing concern in modern digital security. Under the terms of the agreement, CyberArk shareholders will receive $45 in cash and 2.2005 shares of Palo Alto Networks stock for each share they hold.
Palo Alto Networks said the acquisition will help it expand into the rapidly growing identity security market. “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 Chairman and CEO Nikesh Arora. He added that this approach has helped the company evolve from a next-generation firewall business into a broad-based cybersecurity leader.
Analyst Dan Ives of Wedbush praised the move, calling it a “strategic home run.” He noted that the acquisition aligns with Palo Alto’s goal of becoming an all-in-one provider of cybersecurity solutions, particularly as threats powered by artificial intelligence continue to rise. Integrating CyberArk’s technology will further strengthen Palo Alto’s product suite, Ives said.
CyberArk also announced strong financial results, reporting a 46% increase in revenue for the second quarter. The company posted adjusted earnings of 88 cents per share, surpassing analyst expectations.
This deal is one of the largest in the cybersecurity sector this year. Back in March, Google announced its own massive acquisition with a $32 billion agreement to buy security firm Wiz, marking the tech giant’s biggest purchase to date.
Both Palo Alto Networks’ and CyberArk’s boards have unanimously approved the deal, which is expected to close in the second half of Palo Alto’s fiscal 2026. However, the transaction still requires approval from CyberArk shareholders.
Following the announcement, shares of Santa Clara, California-based Palo Alto Networks fell nearly 8% in morning trading, while CyberArk shares dipped 1.8%.
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