Palo Alto Networks is set to acquire CyberArk in a strategic move that establishes Identity Security as a core pillar of its multi-platform strategy. CyberArk shareholders will receive $45 in cash and 2.2005 shares of Palo Alto Networks stock for each share of CyberArk, valuing the company at approximately $25 billion—a 26% premium over its 10-day average price as of July 25, 2025.
This acquisition will merge CyberArk’s expertise in Identity Security and Privileged Access Management (PAM) with Palo Alto Networks’ AI-powered security platforms, aiming to protect all identity types, including human, machine, and autonomous AI agents. The integration highlights the increasing need for a robust Identity Security platform to protect privileged credentials in the face of modern enterprises’ challenges.
The integration of CyberArk’s Identity Security Platform with Palo Alto Networks’ Strata and Cortex platforms is expected to provide several key benefits:
Accelerated Platform Strategy – The combined platform will provide a unified solution to eliminate security gaps and simplify operations, leveraging AI for identity-aware security and real-time response capabilities.
Disruption of Legacy IAM Market – This partnership will evolve the traditional Identity and Access Management (IAM) market by applying robust, security-first PAM principles to every identity across the enterprise.
Securing Agentic AI – As organizations adopt autonomous AI agents, these become highly privileged users. Identity Security will serve as an essential framework to secure this new workforce paradigm by enforcing just-in-time access and least privilege principles, ensuring AI agents have only the necessary permissions.
The acquisition will bring together two security leaders to create a comprehensive and integrated security portfolio, positioning the combined companies as the “cyber guardian” for their customers. This will allow businesses to focus on core objectives and AI adoption while ensuring their digital security.
The Boards of Directors have unanimously approved the deal, expected to close in the second half of Palo Alto Networks’ fiscal year 2026, pending regulatory approvals and CyberArk shareholder consent. Palo Alto Networks anticipates the acquisition will enhance revenue growth, gross margin, and free cash flow per share by fiscal year 2028.
Advisors: 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. Qatalyst Partners is serving as the financial advisor to CyberArk, while Latham & Watkins and Meitar Law Offices are providing legal counsel.
KEY QUOTES:
“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.”
Nikesh Arora, Chairman and CEO of Palo Alto Networks
“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.”
Udi Mokady, Founder and Executive Chairman of CyberArk
