Palo Alto Networks will acquire CyberArk in a deal valued at about $25 billion, marking its formal entry into identity security as part of its multi-platform strategy.
Under the agreement, CyberArk shareholders will receive $45 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk share, representing a 26% premium to CyberArk’s 10-day volume-weighted average price as of July 25, 2025.
Palo Alto Networks said the acquisition will combine CyberArk’s work in identity security and privileged access management with its AI-powered security platforms. CyberArk’s capabilities will be integrated into its Strata and Cortex platforms to provide identity-aware security and faster enterprise response.
Palo Alto Networks Chairman and CEO Nikesh Arora said the company sees identity security at a critical turning point and views the acquisition as a natural extension of its evolution from a next-generation firewall provider to a multi-platform cybersecurity company.
“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,'” he added. “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.”
CyberArk Founder and Executive Chairman Udi Mokady said the acquisition marks a pivotal moment for the company, reflecting its long-standing focus on protecting critical assets through innovation, trust and security. He said joining Palo Alto Networks represents the next phase of CyberArk’s mission, built on shared values and a commitment to tackling the most complex identity security challenges.
“Together, we’ll bring unmatched expertise across human and machine identities, privileged access, and AI-driven innovation to secure what’s next,” he added. “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.”
The transaction, unanimously approved by both companies’ boards, is expected to close in the second half of Palo Alto Networks’ fiscal 2026, pending regulatory and shareholder approvals.