Palo Alto Networks announced it has completed its acquisition of CyberArk, positioning identity security as a core element of the company’s broader platformization strategy and expanding its coverage across human, machine, and “agentic” identities.
The company said the addition of the CyberArk Identity Security Platform is designed to help enterprises secure every identity operating across modern environments as organizations scale cloud adoption, automation, and AI. Palo Alto Networks framed identity as the primary attack path in today’s enterprise, citing rapid growth in non-human identities and persistent governance challenges around privileges and access.
In the announcement, Palo Alto Networks said machine identities now outnumber human identities by more than 80 to 1, while 75% of organizations acknowledge their human identities are governed by outdated, overly permissive privilege models. The company also said nearly 90% of organizations have already suffered an identity-centric breach, and argued that credential abuse and excessive privilege have become dominant threat vectors.
Palo Alto Networks said the deal extends privilege security controls beyond a limited set of administrators to every identity across the enterprise. The company said expanding privileged access controls across human, machine, and AI identities can reduce standing privileges, limit lateral movement, and speed up the containment of identity-based attacks. It also cited claims that companies using identity-driven security controls can accelerate breach response by up to 80% by preventing attackers from abusing credentials and excessive access.
CyberArk’s identity security offerings will continue to be available as a standalone platform, according to the release. Palo Alto Networks said it has begun integrating CyberArk capabilities into the broader Palo Alto Networks security ecosystem, while stating that existing customers should not experience disruption and will see an accelerated product roadmap focused on resilience, operational efficiency, and improved security outcomes.
As part of the announcement, Palo Alto Networks also said it intends to pursue a secondary listing on the Tel Aviv Stock Exchange, with plans to adopt the “CYBR” ticker on the TASE while continuing to trade as “PANW” on the NASDAQ Global Select Market. The company said the move is meant to reflect CyberArk’s heritage and Israel’s role in cybersecurity, and it highlighted its Israeli R&D center as its largest outside Silicon Valley.
Under the terms of the agreement, CyberArk shareholders are entitled to receive $45 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk ordinary share.
KEY QUOTES:
“The emerging wave of AI agents will require us to secure every identity—human, machine, and agent. This is why we moved decisively by announcing our intent to acquire CyberArk last July and am excited to have product integration begin. For our customers, this means the end of ‘identity silos.’ They can now manage privileged access across their entire hybrid cloud environment from the same company they trust for Network Security and Security Operations—to ensure they are secure in the AI era.”
Nikesh Arora, Chairman And CEO, Palo Alto Networks
“Joining forces with Palo Alto Networks creates the definitive cyber guardian for the modern enterprise. This is a win-win: our customers gain access to the world’s most comprehensive security portfolio, and our employees join a global innovation engine. Together, we are creating the most robust combination of proven technologies to stop identity-driven breaches.”
Matt Cohen, CEO, CyberArk
