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Cybersecurity company Palo Alto Networks has agreed to acquire identity security company CyberArk in a cash-and-stock transaction valued at approximately $25 billion.
Palo Alto Networks-CyberArk Combination
Palo Alto said Wednesday it expects the acquisition to close in the second half of its fiscal year 2026, subject to approval by CyberArk shareholders, regulatory clearances and other customary closing conditions.
The boards of directors of both companies unanimously approved the transaction, which is expected to be accretive to Palo Alto’s free cash flow per share in FY 2028.
For each of their shares, CyberArk shareholders will get $45 in cash and 2.2005 shares of Palo Alto Networks common stock.
Making Identity Security a Core Pillar of Palo Alto’s Multiplatform Strategy
The proposed acquisition will enable Palo Alto to establish identity security as a core pillar of its multiplatform strategy and integrate CyberArk’s capabilities with its Cortex and Strata platforms to deliver identity-aware security and real-time response across the enterprise.
Through the transaction, Palo Alto Networks will transition to security-first privileged access management principles and help secure the new wave of autonomous artificial intelligence agents by delivering identity security for agentic AI.
“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,” said Nikesh Arora, chairman and CEO of Palo Alto Networks.
“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,” Arora added.
Udi Mokady, founder and executive chairman of CyberArk, said the proposed combination will bring expertise across privileged access, human and machine identities, and “AI-driven innovation to secure what’s next.”
What Does CyberArk Do?
Founded in 1999, CyberArk offers identity security tools that enable zero trust and least privilege to help organizations mitigate security and operational risks. The company’s AI-powered Identity Security Platform applies intelligent privilege controls to every identity to continuously prevent, detect and respond to threats.