Palo Alto Networks announced it will acquire CyberArk in a transaction valued at approximately $25 billion. Under 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 26% premium to the unaffected 10-day average of CyberArk’s daily VWAPs. The acquisition will mark Palo Alto Networks’ entry into Identity Security as part of its multi-platform strategy, integrating CyberArk’s expertise in Privileged Access Management with Palo Alto Networks’ AI-powered security platforms. “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. CyberArk Founder and Executive Chairman Udi Mokady called the deal “a profound moment” for the company, noting the shared commitment to solving complex identity challenges.
The combined entity aims to extend privilege protection to human, machine, and autonomous AI identities, strengthening defenses against modern security threats. The transaction, unanimously approved by both companies’ boards, is expected to close in the second half of Palo Alto Networks’ fiscal 2026, subject to regulatory and shareholder approvals. Palo Alto Networks expects the deal to be immediately accretive to revenue growth and gross margin, and beneficial to free cash flow per share by fiscal year 2028 after synergy realization. Financial advisors for the deal include J.P. Morgan Securities for Palo Alto Networks and Qatalyst Partners for CyberArk.