Palo Alto Networks to acquire CyberArk for $25 billion to strengthen AI-era cybersecurity
Palo Alto Networks (PANW) announced Wednesday that it will acquire Israeli cybersecurity firm CyberArk Software (CYBR) in a cash-and-stock deal valued at $25 billion, its largest acquisition to date. The move is aimed at expanding Palo Alto’s capabilities as enterprises increasingly seek robust security solutions to counter AI-driven threats.
The deal, among the biggest tech takeovers of 2025, highlights growing consolidation in the cybersecurity sector as organizations consolidate vendors following high-profile breaches. It follows Alphabet’s $32 billion acquisition of Israeli startup Wiz in March and will add CyberArk’s leading identity security tools to Palo Alto’s portfolio, strengthening its appeal to large enterprises, News.Az reports, citing foreign media.
CyberArk shareholders will receive $45.00 in cash and 2.2005 Palo Alto shares for each share they own. The companies expect the transaction to close in fiscal 2026, with Palo Alto saying it will be immediately accretive to revenue growth and gross margins.
“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,” Palo Alto CEO Nikesh Arora said.
CyberArk is best known for its privileged access management technology, which helps organizations protect sensitive systems by restricting and monitoring access to critical accounts. Its customers include major global firms such as Carnival Corp, Panasonic, and Aflac.
Shares of Palo Alto fell more than 6% in pre-market trading following the announcement, while CyberArk stock slipped 1.3% after surging 13.5% the previous session on deal speculation. CyberArk shares are up about 30% year-to-date.
The acquisition comes amid a surge in cyberattacks, including data breaches and ransomware, which has driven strong demand for more comprehensive defense platforms. Analysts believe Palo Alto could leverage its large salesforce to accelerate adoption of CyberArk’s tools, seen as essential for securing emerging AI-driven systems.
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