Massive Acquisition: Palo Alto Networks agrees to purchase CyberArk in a whopping $25 billion deal, expanding its cybersecurity portfolio substantially.
Palo Alto Networks, a leading cybersecurity company, has announced its plans to acquire CyberArk, a specialist in Identity Security and Privileged Access Management (PAM), in a deal valued at around $25 billion. The acquisition, subject to regulatory approvals and CyberArk shareholder consent, is expected to close in the second half of Palo Alto Networks' fiscal year 2026.
Udi Mokady, Founder and Executive Chairman of CyberArk, expressed that the acquisition marks a powerful next chapter, built on shared values and a deep commitment to solving the toughest identity challenges. Nikesh Arora, Chairman and CEO of Palo Alto Networks, stated that the acquisition will define the next chapter of cybersecurity, focusing on the vision that every identity requires the right level of privilege controls, not the 'IAM fallacy'.
The deal aims to merge CyberArk's expertise in Identity Security and PAM with Palo Alto Networks' AI-powered security platforms. The integration of CyberArk's Identity Security Platform with Palo Alto Networks' Strata and Cortex platforms is expected to provide a unified solution to eliminate security gaps and simplify operations.
CyberArk shareholders will receive $45 in cash and 2.2005 shares of Palo Alto Networks stock for each share of CyberArk. The combined companies aim to position themselves as the "cyber guardian" for their customers, allowing businesses to focus on core objectives and AI adoption while ensuring digital security.
The acquisition is expected to accelerate Palo Alto Networks' platform strategy, disrupting the legacy Identity and Access Management (IAM) market by applying robust, security-first PAM principles to every identity across the enterprise. The partnership will evolve the traditional IAM market by securing autonomous AI agents, enforcing just-in-time access, and least privilege principles for AI agents.
The transaction is expected to be accretive to Palo Alto Networks’ revenue growth, gross margin, and free cash flow per share by fiscal year 2028, showcasing strong strategic and financial benefits. The key benefits expected from the merger include a comprehensive integrated security portfolio, securing agentic AI, and disrupting the legacy IAM market.
J.P. Morgan Securities is acting as the financial advisor to Palo Alto Networks in this acquisition. Qatalyst Partners is serving as the financial advisor to CyberArk. Wachtell, Lipton, Rosen & Katz, Arnold & Porter Kaye Scholer, and Latham & Watkins are the legal counsels for Palo Alto Networks and CyberArk respectively. Meitar Law Offices is providing legal counsel to CyberArk.
In summary, this merger is designed to position Identity Security as a core pillar of Palo Alto Networks’ platform, expanding protection for all identity types, including emerging AI agents, simplifying security management, disrupting legacy IAM markets, and enhancing overall cybersecurity outcomes for enterprises.
- The combined companies aim to leverage CyberArk's Identity Security expertise and Palo Alto Networks' AI-powered security platforms to provide a unified solution that secures agentic AI and disrupts the legacy Identity and Access Management (IAM) market.
- By merging CyberArk's Identity Security Platform with Palo Alto Networks' Strata and Cortex platforms, the partnership intends to simplify security management, expand protection for all identity types, including emerging AI agents, and enhance overall cybersecurity outcomes for enterprises.
