Large-scale acquisition announced: Palo Alto Networks plans to acquire CyberArk for a substantial $25 billion.
Palo Alto Networks, a leading cybersecurity company, has announced its acquisition of CyberArk, a specialist in Identity Security and Privileged Access Management (PAM), for approximately $25 billion. 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 their digital security.
The acquisition will merge CyberArk's expertise in Identity Security and PAM with Palo Alto Networks' AI-powered security platforms. This move marks Palo Alto Networks' formal entry into the identity security space by integrating CyberArk's industry-leading privileged access management and identity security capabilities into its existing platforms, Strata and Cortex.
Strategically, the deal transforms Palo Alto from primarily a next-generation firewall provider into a multi-platform cybersecurity company with a comprehensive, integrated security portfolio that addresses modern challenges around identity and AI-driven security threats. By combining CyberArk’s "durable, foundational technology" with Palo Alto’s AI-centric platforms, the companies aim to deliver identity-aware security and accelerated enterprise response capabilities.
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 partnership will evolve the traditional Identity and Access Management (IAM) market by applying robust, security-first PAM principles to every identity across the enterprise.
The transaction is expected to be immediately accretive to Palo Alto Networks’ revenue growth and gross margin, and to free cash flow per share by fiscal year 2028, reflecting confidence in long-term value creation from the integrated platforms. The deal between Palo Alto Networks and CyberArk is expected to close in the second half of Palo Alto Networks' fiscal year 2026, subject to regulatory approvals and CyberArk shareholder consent.
The integrated platform is expected to provide a unified solution to eliminate security gaps and simplify operations, leveraging AI for identity-aware security and real-time response capabilities. The acquisition will secure agentic AI, as autonomous AI agents become highly privileged users, by enforcing just-in-time access and least privilege principles. The integration aims to protect all identity types, including human, machine, and autonomous AI agents.
Udi Mokady, Founder and Executive Chairman of CyberArk, expressed that the partnership will bring unmatched expertise across human and machine identities, privileged access, and AI-driven innovation to secure what's next. The acquisition will see CyberArk shareholders receive $45 in cash and 2.2005 shares of Palo Alto Networks stock for each share of CyberArk.
Qatalyst Partners is serving as the financial advisor to CyberArk, while Latham & Watkins and Meitar Law Offices are providing legal counsel. J.P. Morgan Securities is acting as financial advisor to Palo Alto Networks, and Wachtell, Lipton, Rosen & Katz is acting as legal counsel, and Arnold & Porter Kaye Scholer is acting as regulatory counsel.
In summary, the acquisition enables Palo Alto Networks to become a single, trusted vendor offering integrated cybersecurity solutions that combine network, cloud, identity, and AI security, helping customers secure their digital future amidst increasingly complex threats. This strategic move reflects the shifting cybersecurity landscape where identity security and AI-driven defenses are paramount.
- With the merger of CyberArk's identity security expertise and Palo Alto Networks' AI-powered security platforms, the companies aim to deliver identity-aware security and accelerated enterprise response capabilities, positioning themselves as a primary provider of integrated cybersecurity solutions that combine network, cloud, identity, and AI security.
- The acquisition of CyberArk by Palo Alto Networks is a strategic move to strengthen their business in the face of modern challenges around identity and AI-driven security threats, focusing on securing all identity types, including human, machine, and autonomous AI agents, to protect against increasingly complex threats.
