Palo Alto Networks to Acquire CyberArk in $25 Billion Deal, Strengthening AI-Era Identity Security

In a strategic move set to reshape the cybersecurity landscape, Palo Alto Networks (NASDAQ: PANW) announced a definitive agreement to acquire CyberArk (NASDAQ: CYBR), a global leader in Identity Security, in a transaction valued at approximately $25 billion.

Under the terms, CyberArk shareholders will receive $45 in cash and 2.2005 shares of Palo Alto Networks common stock per CyberArk share—a 26% premium over CyberArk’s 10-day average stock value as of July 25, 2025.

This landmark acquisition positions Identity Security as a new core platform for Palo Alto Networks, solidifying its AI-driven cybersecurity vision. It enables the company to protect every identity—human, machine, and AI agent—by integrating privileged access management (PAM) into its existing Strata™ and Cortex® platforms.

“We believe the inflection point for Identity Security is now,” said Nikesh Arora, Chairman and CEO of Palo Alto Networks. “Together with CyberArk, we will secure every identity, including agentic AI, with foundational privilege controls essential for the AI era.”

Udi Mokady, CyberArk’s Founder and Executive Chairman, added, “This combination brings unmatched expertise across human and machine identities, privileged access, and AI-driven innovation. It accelerates the mission we began two decades ago.”

Key Highlights:

• Strategic expansion of Palo Alto Networks into Identity Security, enhancing platform strategy.

• Disruption of legacy IAM systems by applying security-first PAM across all identity types.

• Protection for agentic AI through just-in-time access and least privilege principles.

• Expected to be accretive to revenue and gross margin, with synergies realized by FY 2028.

The transaction has been unanimously approved by both companies' Boards and is expected to close in the second half of FY2026, subject to regulatory approvals and shareholder consent.