Palo Alto Networks has announced a definitive agreement to acquire CyberArk, a pioneer in Identity Security and PAM.
CyberArk, which is also listed on NASDAQ, is recognised for its robust protection of human and machine identities.
The acquisition, valued at approximately $25bn, will see CyberArk shareholders receive $45.00 in cash and 2.2005 shares of Palo Alto Networks common stock for each share they own. This deal represents a 26% premium to the 10-day average volume-weighted price of CyberArk’s stock as of 25 July 2025. The acquisition aims to formally bring Palo Alto Networks into the identity security space, positioning it as a strategic pillar of the company’s future growth.
Palo Alto Networks has built a reputation as a cybersecurity platform provider, offering AI-enhanced tools across cloud, network, and endpoint security. The acquisition supports its evolution from a firewall company into a broader, multi-platform security leader. CyberArk, for its part, has long been a dominant force in Identity Security, helping organisations secure privileged credentials and enforce least privilege access across enterprises.
This merger aims to accelerate Palo Alto Networks’ platformisation strategy, combining CyberArk’s identity-first capabilities with Palo Alto Networks’ existing Strata™ and Cortex® platforms. The joint offering will deliver identity-aware, real-time security responses across entire enterprises, enhancing protection for both human and non-human identities—including autonomous AI agents.
The companies also aim to disrupt the legacy identity and access management (IAM) market. By shifting from traditional hygiene-focused practices to security-first privilege controls, the integration will address critical risks in modern enterprises, particularly in environments driven by Agentic AI and machine workloads.
The boards of directors for both companies have unanimously approved the transaction. Subject to regulatory approvals and shareholder consent, the deal is expected to close in the second half of Palo Alto Networks’ fiscal 2026. The company anticipates the acquisition will be immediately accretive to revenue growth and gross margins, with additional free cash flow benefits expected by fiscal 2028.
Palo Alto Networks CEO Nikesh Arora said, “Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for Identity Security is now. This strategy has guided our evolution from a next-gen firewall company into a multi-platform cybersecurity leader. Today, the rise of AI and the explosion of machine identities have made it clear that the future of security must be built on the vision that every identity requires the right level of privilege controls, not the ‘IAM fallacy’. CyberArk is the definitive leader in Identity Security with durable, foundational technology that is essential for securing the AI era. Together, we will define the next chapter of cybersecurity.”
CyberArk founder and executive chairman Udi Mokady said, “This is a profound moment in CyberArk’s journey. From the beginning, we set out to protect the world’s most critical assets, with a relentless focus on innovation, trust, and security. 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. This is more than a combination of technologies—it’s an acceleration of the mission we began over two decades ago. I’m incredibly proud of what our team has built and deeply grateful to everyone who made this milestone possible.”
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