Palo Alto Networks Acquires CyberArk for $25 Billion, Targeting AI-Driven Cybersecurity Threats

Palo Alto Networks Enters the Identity Security Market with $25B Purchase of CyberArk

Palo Alto Networks has announced definitive plans to acquire privileged identity management vendor CyberArk for $25 billion, making it the third-largest cybersecurity M&A deal in history. This follows Google's $32B buy of Wiz earlier this year and Cisco's $28B acquisition of Splunk in 2024. Founded in 1999 and IPO'd in 2014, CyberArk's annual revenues passed the $1B mark in 2024, which places this acquisition price around an 18- 20x revenue multiple. Palo cited three main drivers for their interest in CyberArk: This acquisition highlights Palo Alto Networks' continued mission to become a major security platform player. There are areas where this acquisition makes sense; both Palo and CyberArk focus on large enterprise customers in North America and EMEA, both have strong salesforces, both provide a multitenant SaaS offering, and both have strong partner ecosystems. Given Palo's recent choice to pivot Prisma Cloud to Cortex Cloud and merge the offerings into one platform, it's likely that they will pursue a similar strategy with this acquisition. However, this approach has some major challenges: namely, that the users for Cortex are security operations-focused, while the users for CyberArk are identity security-focused and typically led by the goal of protection and identification, with detection and response as secondary. On the plus side, identity security alerts and telemetry are highly valuable for detection and response; they provide critical telemetry and alerts that improve detection and speed up response. For Cortex and CyberArk customers, this could be a valuable consolidation if done right. However, the track record on mega security and identity tie-ups is incomplete and unproven. One can point to EMC/RSA or Broadcom/CA as examples, but those were from different eras and CA was not a security pure-play. The sensitive nature of IAM protections - and associated vendor liabilities - as well as the fact that IAM is deeply embedded within business processes and infrastructure makes identity security related acquisitions inherently riskier and with more complex sales cycles. This doesn't mean that the Palo Alto/CyberArk merger cannot be successful, but it will require more operational support as Palo is not integrating a 100 person VC-backed startup, but a global billion-dollar+ company with thousands of employees and customers. Palo Alto Networks was one of the first mega security vendors to go all-in on "security platform" messaging, and this acquisition deepens its commitment to being a one-stop shop for its customers. Integrating smaller acquisitions to deliver on platform promises isn't entirely easy, but this acquisition takes that to another level. In fact, given the disparate nature of these technologies in terms of users and administrators, this seems to be more of a platform-of-platforms approach. Nikesh Arora doubled down on this in the investor call about the acquisition, commenting that this acquisition helps Palo Alto bring "the most comprehensive set of platforms across the industry that deliver against the customers' need of security." Palo Alto Networks is clearly assembling a platform-of-platforms to compete with the likes of CrowdStrike in a module-by-module sell-off. The challenge for Palo Alto Networks is that, with the products in their portfolio, these operational domains and budgets live in deeply segregated areas. This makes it more difficult to sell modules...at least initially. CyberArk's product line focus on identity does not match neatly with Palo Alto's legacy core capabilities in network and cloud. This can yield both promise and potential pitfalls, the greatest of which is unifying integrations to create a shared data model and centralized control plane. This will challenge PANW for years to come. Forrester research shows that bundling discounts and a one-stop-shop were the least important reasons for security leaders to select a platform provider. Instead, ease of integration, ease of use, and more productivity topped the list. Integration is a multifaceted exercise that covers 1) sales, professional services and support processes, and 2) centralized policy management and reporting across heritage Palo Alto and CyberArk product lines. There is still a lot of integration debt from previous acquisitions that built the Cortex/ex Prisma Cloud product family (Twistlock, Evident.io and others). Similarly, CyberArk has been dealing with of its own integration debt stemming from its recent acquisitions of Venafi (October 2024) and Zilla Security (February 2025). CyberArk's Zilla acquisition and PANW's SaaS and cloud infrastructure CSPM/CIEM capabilities also overlap to a degree. The Palo Alto Networks investor call content featured the machine identity and AI agent/agentic market opportunity as a key reason for the acquisition - as AI agents will require Just-in-Time (JIT) access controls and will need privileged credentials to connect to back-end data sources. Despite investing in securing AI, Palo Alto Networks' platform lacked an identity component. This closes that gap in a segment that is expected to grow as AI agents and agentic architectures proliferate across enterprises in the coming years. At present, identity is one of the pillars of agent and agentic security while observability, logging, lineage, and provenance are yet to fully form across protocols like MCP and A2A. Even then, identity security will face new challenges based on ephemeral, scalable, task- oriented identities springing up to execute portions of a workflow. Identity security for the agentic AI future will rely on a backbone of cryptography and Palo will benefit from CyberArk's subject matter expertise in key management, PKI, and quantum security. Some of CyberArk's offerings could align well with Palo Alto's investments in application security and in quantum security, though some work will be needed to bring them together. For example, businesses looking to adapt to consumer interest in AI agent use cases will need to better understand the identity and intent of inbound agent traffic. A combination of agent identity via CyberArk and traffic analysis via Palo Alto's WAF and bot management components could be compelling, though the integration will take some work. Palo's acquisition is bound to further disrupt technical alliances and strategic partnerships. This is particularly true given the state of the IAM market, which is experiencing a rise in coopetition from the convergence of IAM functional silos and adjacent vendors such as CrowdStrike, SailPoint, and Okta expanding into the privileged identity space. Forrester expects IAM vendors technical partnerships with existing integrations to remain intact, but this will stress business partnerships and fuel additional IAM vendor consolidation. While the acquisition serves as a validation of the importance of identity to cybersecurity, ultimately identity is a pillar in cybersecurity, not the other way around. In the near-term, it opens opportunities for existing identity vendors including BeyondTrust, Delinea, and Saviynt to highlight their differentiation with an identity-first focus, commitment to standards-based integrations, and agility in to go down-market. To discuss your options and strategize on how to make the best use out of these announcements, Forrester clients can set up a guidance session or inquiry with me.

Palo Alto Networks inks $25b deal to buy CyberArk

The lure? Identity security and privileged access management tools to verify humans and... machines Palo Alto Networks will buy Israeli security biz CyberArk in a $25 billion cash-and-stock deal confirmed today. It's Palo Alto Network's largest purchase to date, and one of the most expensive acquisitions this year coming in behind Google paying $32 billion for cloud security upstart Wiz in March. CyberArk provides identity security and privileged access management tools, which have become increasingly important to enterprises who need to not only verify and secure human identities, but also machines and AIs. "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," Palo Alto Networks CEO Nikesh Arora said in a statement announcing the purchase. Machine identities outnumber those of humans by 40 to one, according to CyberArk, and this number is expected to skyrocket as more companies use AI agents. The move also boosts Palo Alto Network's "platform strategy," as it aims to pack all of the security capabilities into a single, unified product -- with all sorts of add-ons available for purchase, of course. Under the terms of the deal, CyberArk investors will receive $45 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk share they own. The transaction is expected to close in the second half of Palo Alto Networks' fiscal 2026. ®

Palo Alto to scoop up CyberArk for $25 billion to tackle AI-era threats

July 30 (Reuters) - Palo Alto Networks (PANW.O), opens new tab said on Wednesday it would buy Israeli peer CyberArk Software (CYBG.F), opens new tab for about $25 billion, deepening its push to become a comprehensive provider of cybersecurity services amid rising AI-driven threats. The deal, Palo Alto' biggest yet and one of the largest tech takeovers this year, is the latest in a wave of consolidation as companies look to streamline vendors after facing breaches while relying on a patchwork of firms. It follows Alphabet's (GOOGL.O), opens new tab $32 billion acquisition of Israeli startup Wiz in March, and would broaden Palo Alto's cybersecurity offerings by adding identity security tools, bolstering its appeal to large enterprise customers. CyberArk investors will receive $45.00 in cash and 2.2005 shares of Palo Alto for each share they own under the deal, the companies said in a joint statement. The acquisition is expected to close in fiscal 2026 and will immediately add to Palo Alto's revenue growth, as well as gross margin. "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," Palo Alto Networks CEO Nikesh Arora said. CyberArk specializes in privileged access management, technology that helps organizations safeguard sensitive systems by limiting and monitoring access to critical accounts. Its customers include Carnival Corp, Panasonic and Aflac. A surge in cyberattacks, including data breaches and ransomware, has driven demand for more comprehensive defenses. That has fueled interest in firms including CyberArk. The deal also comes as Palo Alto looks to accelerate its AI security push, with analysts at Scotiabank saying that it could use its large salesforce to drive adoption of CyberArk's tools -seen as critical for securing emerging agentic AI systems. Reporting by Kritika Lamba and Aditya Soni in Bengaluru; Editing by Sriraj Kalluvila Our Standards: The Thomson Reuters Trust Principles., opens new tab

Palo Alto's $25 billion deal for CyberArk targets rising AI-driven threats

July 30 (Reuters) - Palo Alto Networks (PANW.O), opens new tab will buy Israeli peer CyberArk Software (CYBG.F), opens new tab for about $25 billion, in its biggest deal yet, as CEO Nikesh Arora seeks to build a comprehensive cybersecurity provider to tap into rising AI-driven demand. Wednesday's cash-and-stock deal, one of the largest tech takeovers this year, underscores a consolidation in the cybersecurity industry as customers streamline vendors after facing breaches while relying on a patchwork of firms. It follows Alphabet's (GOOGL.O), opens new tab $32 billion acquisition of Israeli startup Wiz in March, and will broaden Palo Alto's cybersecurity offerings by adding identity security tools, bolstering its appeal to large enterprise customers. A surge in cyberattacks, including data breaches and ransomware, has driven demand for more comprehensive defenses. That has fueled interest in firms including CyberArk. Earlier this month, Microsoft (MSFT.O), opens new tab said hackers broke into its on-premises SharePoint servers, hitting more than 100 groups including U.S. agencies and fanning fears about identity protection. "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," Arora said in a statement. CyberArk specializes in privileged access management, technology that helps organizations safeguard sensitive systems by limiting and monitoring access to critical accounts. Its customers include Carnival Corp (CCL.N), opens new tab, Panasonic and Aflac. The Israeli company's investors will receive $45.00 in cash and 2.2005 shares of Palo Alto for each share they own. That values CyberArk at $495 a share, representing a 29.2% premium to Monday's close, the last session before reports of deal talks, according to Reuters calculations. Palo Alto shares fell 8%, while CyberArk slipped 2.2% to around $424 after jumping 13.5% on Tuesday. INTEGRATION WORRIES Analysts said the drop in Palo Alto shares reflected investor concerns about post-acquisition integration, given that it has usually targeted smaller deals of less than $1 billion. "It's a bit of an unknown territory for Palo Alto," said Imtiaz Koujalgi, Roth Capital Partners' managing director of software research. "Also, Palo Alto talks about integrating its acquisitions into its platform, but given the scale of CyberArk and installed base that could be a challenge." Palo Alto has completed more than 14 acquisitions since 2019, including at least seven in the past two years, to bolster its cloud and AI security capabilities. CyberArk reported revenue of about $1 billion for 2024, up 33% year-over-year, but its loss increased by about $27 million to $93.5 million as expenses jumped. The latest buyout could accelerate Palo Alto's AI security push, as it can tap its large sales force to drive adoption of CyberArk's tools, seen as vital for securing AI systems. "It helps broaden the portfolio since Palo Alto does not have any offering in the 'identity' space," said Koujalgi, adding the deal could also provide a boost to the company's slowing next‑generation security business. Global cybersecurity spending is set to grow 12.2%, opens new tab in 2025, as rising AI-driven threats push companies to adopt stronger defenses, according to IDC. Palo Alto said the buyout is expected to close in the second half of its fiscal year 2026 and would immediately add to its revenue growth and margin. Analysts do not expect tough antitrust scrutiny for the deal, given the little overlap in the companies' services, but they said it could accelerate M&A in the sector. One Israeli company seemed to rebuff that idea for now. Check Point Software Technologies (CHKP.O), opens new tab said earlier in the day it was not looking to be bought out like some local rivals. Reporting by Kritika Lamba and Aditya Soni in Bengaluru; Editing by Sriraj Kalluvila Our Standards: The Thomson Reuters Trust Principles., opens new tab

Palo Alto's $25 bln deal burns value for tech cred

NEW YORK, July 30 (Reuters Breakingviews) - Palo Alto Networks (PANW.O), opens new tab has proven itself a canny acquirer before. The $120 billion cybersecurity firm's latest transaction, the $25 billion purchase of CyberArk (CYBG.F), opens new tabannounced on Tuesday, opens new tab, tests that track record. Expanding into identity security just as artificial intelligence presents new threats holds the promise of warp-speed growth. AI hype, however, inflated the price tag, raising the risk that the buyer is overextending itself to keep pace with the latest tech mania. There are a few things to keep in mind about cybersecurity. The market is both essential and growing quickly, since society's reliance on technology - and need to stay safe while using it - is only increasing. However, the industry is fragmented: new generations of startups regularly sprout and wither, especially as new areas like AI arise. Keeping up with the new and ahead of the old is existential. Palo Alto started with firewalls, which police traffic on a network, but succeeded by expanding into cloud security, data protection and responding to breaches. It did so by bolting on dozens of smaller firms over the past decade, targeting strong contenders in fields that were just about to take off. By plugging them into its large organization, the theory is that it can grow their distribution, lifting sales. Indeed, Palo Alto's revenue has more than doubled in five years, and the stock outperformed the S&P 500 Index. Likewise, CyberArk is growing rapidly, and expected to do better from here, opens new tab. Identifying users is increasingly important, as most hacks involve stolen identities. While there are already more machines than humans crawling around networks, AI will supercharge the growth of inhuman actors that must be verified. Scooping it up fits the mold of constantly burnishing Palo Alto's bleeding-edge credibility. The problem is that the $25 billion deal is simply huge compared to past acquisitions. Moreover, CyberArk is more about promise than the present. The company's estimated operating profit for 2026 is about $300 million, according to analyst estimates gathered by LSEG. Tax this at the statutory corporate rate, and the expected return on Palo Alto's gigantic investment is some 1%. Perhaps a quickly expanding addressable market and the buyer's distribution will increase this figure over time. No specific targets for profit-boosting cost cuts or revenue uplifts were given. Investors are unsure: they have wiped $16 billion off Palo Alto's market value since Friday, prior to reports of a potential tie-up. From tungsten cubes to Tesla's Cybertruck, keeping up with tech fads is an expensive pastime. Unlike the angular vehicle, AI is likely to stay in vogue. The question is whether this deal will. Follow Robert Cyran on Bluesky, opens new tab. Context News* Palo Alto Networks said on July 30 that it had agreed to buy CyberArk Software for approximately $25 billion. The cybersecurity firm will pay $45 in cash and 2.2005 of its shares for each share of CyberArk. The offer represents a 26% premium, based on the unaffected 10-day volume-weighted average prices of both companies' stocks. * JPMorgan is providing financial advice to Palo Alto, while Qatalyst Partners is advising CyberArk. Editing by Jonathan Guilford; Production by Maya Nandhini * Suggested Topics: * Breakingviews Breakingviews Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time. Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors. Robert Cyran Thomson Reuters Robert Cyran, U.S. tech columnist, joined Breakingviews in London in 2003 and moved four years later to New York, where he continues to cover global technology, pharmaceuticals and special situations. Robert began his career at Forbes magazine, where he assisted in the startup of the international version of the magazine. Before working at Breakingviews he worked as a market researcher and reporter covering the pharmaceutical industry. Robert has a Masters degree in economics from Birmingham University and an undergraduate degree from George Washington University.

Palo Alto Networks makes $25 billion deal for CyberArk

Why it matters: This is a reminder that the AI gold rush is as much about supporting services as it is about foundational models, with CyberArk building tools that secure AI agents' identities. By the numbers: CyberArk stockholders will receive $45 in cash and just over 2.2 Palo Alto shares per CyberArk share. * That works out to around an 8.5% premium to yesterday's closing stock prices, even though a deal leak to the WSJ sent Palo Alto stock down 5.2% and CyberArk shares up 13.5%. * Both companies are down in pre-market trading Wednesday, which would impact the headline price. Zoom out: This is the year's second cybersecurity megadeal, following Google's $32 billion agreement with Wiz. The bottom line: This feels like the biggest move yet in Palo Alto CEO Nikesh Arora's big 'platformization' push at Palo Alto Networks. If it works, it could set his company up to be a leader in securing identities in the AI age.

Analysis: Palo Alto Networks bolsters Its AI play with acquisition of CyberArk - SiliconANGLE

Analysis: Palo Alto Networks bolsters Its AI play with acquisition of CyberArk Palo Alto Networks Inc.'s announcement Tuesday of its intent to acquire CyberArk for $25 billion implies a heavy price tag, as its shares fell on the news. But I believe it to be a good, long-term strategic move for Palo Alto and a logical extension of its platformization strategy. Valuation is interesting to look at but highly overrated long-term. If an acquisition is a good one and helps transform a company, then the purchase price won't matter over time. Consider the purchase of Mellanox Technologies Ltd. by Nvidia Corp., which was almost $7 billion in 2019. Given that it moved Nvidia into networking and was the foundation for innovations like NVLink and NVSwitch, the company could have paid twice what it did, and we still would have looked at it today as a good deal. CyberArk enables Palo Alto to go after the identity market, which should flourish in the agentic and physical artificial intelligence era. Post-acquisition news, Palo Alto CEO Nikesh Arora (pictured) was on CNBC and discussed this with Jim Cramer. "I've always paid attention to markets when they inflect, because inflection points create the opportunity for us to enter markets," he said. "I believe with the AI wave we're seeing, with 88% of all ransomware attacks driven by credential theft, identity is an unsolved problem." This topic of conversation came up with Arora at an analyst roundtable at the recent RSA Conference. He discussed the concept of allowing agents to complete tasks on our behalf and the security challenges associated with this. A simple example would be to ask an airline's agentic agent to rebook a flight for you. One would need to give permission for the agent to do that. The logical extension of this is then to have the airline agent rebook your hotel, car rental, dinner reservations and so on. The challenge with this is do you give your usernames and passwords for the various services to the airline? A third-party agent? A digital twin of yourself? There are many possibilities, all of which will be used to some degree. Also, with the rise of physical AI, each of those devices needs an "identity" to operate securely within their environments. I recently spoke with a chief information officer of a healthcare organization, and we were discussing using autonomous wheelchairs to take patients curbside, obviating the requirement to have a clinician take the person. That would allow for the clinicians to spend more time bedside rather than doing a task that could be automated. However, in healthcare, security is paramount, creating the need for a holistic identity solution. CyberArk will plug in nicely with Palo Alto on several fronts. The first is the convergence of privileged access management, or PAM, and identity and access management, or IAM. The two are similar but operate at different levels. The latter is broad in scope and manages identities and permissions for all people, devices and apps. PAM can be considered a specialized subset of IAM where it focuses specifically on securing and managing high-level "privileged" users. Historically, PAM was more expensive to deploy than IAM, so its use was limited. By rolling it into their platform, Palo Alto can offer PAM at the same cost as IAM, enabling it to be used on every device, user, machine and AI agent. The concept of "proliferation of privilege" has been bandied about for a while, but with standalone platforms it's hard to scale. Also, this expands Palo Alto's platform capabilities. The identity industry is like every other submarket of security, in that it's highly fragmented, with the various vendors solving a piece of the security problem. Palo Alto has done an excellent job of acquiring point products into its platforms and then using the data to "see" across the attack surface with more breadth and depth. With threat actors continually focusing on identity for breaches, bringing CyberArk into its platform makes sense and overdue. The concept of the platformization is simple to understand and has been happening for over a decade. New vendors pop up to solve a problem, as the features get standardized, then get rolled into a larger platform. The best example of this is the next-generation firewall. At one time customers purchased firewalls, IPS systems, virtual private networks and more as point products. Today, no one does that, as the features were standardized and rolled into the firewall. Similarly, secure web gateways, cloud access security broker, zero trust and so on were all separate products and now they've been rolled into a security service edge stack. On the interview with Cramer, Arora talked about this. "Long term, a billion-dollar revenue company should not be public," he said. "They should be part of a bigger entity which allows for the leverage and scale required to create large amounts of cash flow and high market cap." He was addressing a financial audience here, but the piece Arora omitted was the larger entity: if the technology is integrated correctly, companies can find and react to breaches faster and more accurately. I'm not sure I agree that there should be no publicly traded security companies of a billion in revenue, but his thesis is correct, particularly in the AI era. Security is now an AI game, which requires data and lots of it. Point products are limited to the data within their silos where the platform vendors have a much broader set of data to work with. The platform vendors need to have the technical chops to know what to do with the data, but that's something Palo Alto has shown it is excellent at, as evidenced by its success with the large number of acquisitions its done. Agentic agents, robots and AI are coming and that requires security teams to rethink their approach to identity. Palo Alto scooped up CyberArk to address this, but I'm sure the other identity players will be in the cross hairs of other security companies. Okta, you're on the clock.

Palo Alto Networks Could Buy CyberArk for Over $20B, Report Says

Palo Alto shares declined, while CyberArk shares jumped following the news. Palo Alto Networks (PANW) could be closing in on an acquisition that would be one of the biggest tech deals of the year, according to a report Tuesday. The cybersecurity giant is in talks to acquire AI cybersecurity firm CyberArk (CYBR), The Wall Street Journal reported, suggesting a deal could be finalized as early as this week. The deal could see Palo Alto Networks spending $20 billion, or $405 per share, to buy Israel-based CyberArk, the report said. A CyberArk spokesperson declined to remark on the report, while Palo Alto Networks did not immediately respond to an Investopedia request for comment. CyberArk shares jumped over 13% Tuesday following the news, while Palo Alto Networks shares dropped about 5%. Jefferies analysts said such a deal "has significant merit" and aligns with Palo Alto's focus on "protecting the new attack surface created by Gen AI." The broker reiterated its $235 price target for Palo Alto Networks in a note following the WSJ report. Shares of Palo Alto have climbed about 7% in 2025 so far, closing just under $194 Tuesday. "AI remains the next frontier of growth and represents a category PANW must win (or at least finish top three in)," Jefferies said. "We believe this acquisition would only further strengthen PANW's position as the cyber platform of choice as customers continue to demand consolidated cyber offerings from fewer vendors." If a deal is made, it would be Palo Alto's second acquisition of 2025 after the company in April agreed to buy Protect AI, a cybersecurity firm focused on AI models and machine learning.

Palo Alto to scoop up CyberArk for $25 billion to tackle AI-era threats - The Economic Times

Palo Alto Networks said on Wednesday it would buy Israeli peer CyberArk Software for about $25 billion, deepening its push to become a comprehensive provider of cybersecurity services amid rising AI-driven threats. The deal, Palo Alto' biggest yet and one of the largest tech takeovers this year, is the latest in a wave of consolidation as companies look to streamline vendors after facing breaches while relying on a patchwork of firms. It follows Alphabet's $32 billion acquisition of Israeli startup Wiz in March, and would broaden Palo Alto's cybersecurity offerings by adding identity security tools, bolstering its appeal to large enterprise customers. CyberArk investors will receive $45.00 in cash and 2.2005 shares of Palo Alto for each share they own under the deal, the companies said in a joint statement. The acquisition is expected to close in fiscal 2026 and will immediately add to Palo Alto's revenue growth, as well as gross margin. "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," Palo Alto Networks CEO Nikesh Arora said. CyberArk specializes in privileged access management, technology that helps organizations safeguard sensitive systems by limiting and monitoring access to critical accounts. Its customers include Carnival Corp, Panasonic and Aflac. A surge in cyberattacks, including data breaches and ransomware, has driven demand for more comprehensive defenses. That has fueled interest in firms including CyberArk. The deal also comes as Palo Alto looks to accelerate its AI security push, with analysts at Scotiabank saying that it could use its large salesforce to drive adoption of CyberArk's tools -seen as critical for securing emerging agentic AI systems.

Another major Israeli cybersecurity firm CyberArk sold in $25 billion blockbuster deal. What does it do?

In a significant cybersecurity deal, Palo Alto Networks is set to acquire CyberArk for $25 billion in cash and stock. This follows Wiz's recent $32 billion sale, marking another major consolidation in the industry. Palo Alto Networks aims to enhance its AI security capabilities by integrating CyberArk's identity security expertise. Another major Israeli cybersecurity firm has been sold in a blockbuster deal. Following Wiz's $32 billion sale, CyberArk is now being acquired by Palo Alto Networks for $25 billion. Founded about 20 years ago by Israeli Nir Zuk, Palo Alto is the world's largest cybersecurity company. Palo Alto Networks on Wednesday said that it's agreed to buy Israeli cybersecurity firm CyberArk for around $25 billion in cash and stock. CyberArk stockholders will receive $45 in cash and just over 2.2 Palo Alto shares per CyberArk share, reports Axios. This is the year's second cybersecurity megadeal, following Google's $32 billion agreement with Wiz. "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," says Palo Alto chairman and CEO Nikesh Arora. "CyberArk is the definitive leader in Identity Security with durable, foundational technology that is essential for securing the AI era." ALSO READ: Julian Brown missing: Was Atlanta inventor working on "the most dangerous thing" he's ever done? Check details Udi Mokady, Founder and Executive Chairman of CyberArk, said: "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." According to a report in Times of Israel, Cyberark is an Israeli cybersecurity firm and is traded on the Nasdaq stock exchange since 2014 with a market cap of almost $22 billion. The company specializes in identity security, including privileged accounts on corporate servers, to help businesses protect sensitive data and critical infrastructure against external attackers and malicious insiders, the report suggests. ALSO READ: New Covid variant symptoms seen in US amid surge in summer wave: Check symptoms and states at the highest risk CyberArk specializes in privileged access management, technology that helps organizations safeguard sensitive systems by limiting and monitoring access to critical accounts. Its customers include Carnival Corp, Panasonic and Aflac, Performance Food Group, State of Louisiana, Barclays, Coles Group, American Electric Power Company among others. "Our mission is to secure the world against cyber threats so together we can move fearlessly forward," the company's website says. Analysts said Palo Alto could accelerate its AI security push by tapping its large salesforce to drive adoption of CyberArk's tools, seen as vital for securing AI systems. "It helps broaden the portfolio since Palo Alto does not have any offering in the 'identity' space," said Imtiaz Koujalgi, Roth Capital Partners' managing director of software research. ALSO READ: Dr Vinay Prasad's FDA exit in less than 3 months linked to Sarepta gene therapy controversy? Check details "Palo Alto also has been seeing growth slow in its next‑generation security portfolio, so adding CYBR will be helpful in driving incremental traction." Global cybersecurity spending is set to grow 12.2% in 2025 as rising AI-driven threats push companies to adopt stronger defenses, according to International Data Corp. The buyout is expected to close in fiscal 2026 and will immediately add to Palo Alto's revenue growth and gross margin. (With inputs from Reuters)

Palo Alto's bold $25B CyberArk deal sparks AI-era cyber defense; but stock plunges 8% -- is Wall Street missing the big picture?

Palo Alto Networks has announced a bold $25 billion acquisition of CyberArk, the global leader in identity security. The deal, a strategic bet on the AI-driven future of cyber defense, immediately sparked investor reactions -- sending Palo Alto's stock tumbling over 8%. The acquisition combines Palo Alto's powerful security platforms with CyberArk's identity and privileged access management tools. As cyber risks grow in complexity, this deal sets the stage for a stronger, AI-ready, end-to-end cybersecurity ecosystem. Industry experts are calling this a game-changer in the race for dominance in AI and cloud security.

Analyst Says Palo Alto Network-CyberArk Is A 'Strategic Home Run Deal,' But PANW Stock Falls Nearly 7% In Pre-Market - Alphabet (NASDAQ:GOOG), CyberArk Software (NASDAQ:CYBR)

Palo Alto Networks PANW has announced its acquisition of Israeli cybersecurity firm CyberArk Software CYBR for a whopping $25 billion, marking the largest acquisition in the company's history. What Happened: The acquisition, revealed on Wednesday, will be a combination of cash and stock. CyberArk investors will receive $45.00 in cash and 2.2005 shares of Palo Alto for each share they own. Check out the current price of PANW stock here. The deal, anticipated to close in fiscal 2026, is projected to boost Palo Alto's revenue growth and gross margin immediately. The acquisition will also expand Palo Alto's cybersecurity offerings, particularly in the area of identity security tools, making the company more attractive to large enterprise customers. Palo Alto's CEO, Nikesh Arora, highlighted the significance of AI and machine identities in shaping the future of security. He stated, "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." During the Wednesday Pre-Market, PANW stock declined 6.62% while CyberArk fell over 1%. Wedbush Analyst Dan Ives called it a " Strategic Home run deal for PANW" on X, creating a "cyber security juggernaut." Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get Started SEE ALSO: Trump's Ex-Commerce Secretary Warns China Won't Bow To US Like EU, Japan: 'If There's A Real Trade War...' Why It Matters: This acquisition comes on the heels of a report suggesting that Palo Alto was in talks to acquire CyberArk for over $20 billion. This potential deal was already causing a stir in the market, with CyberArk shares gaining on the news. The cash-and-stock transaction ranks among the year's most notable tech acquisitions, highlighting ongoing consolidation in the cybersecurity industry. It follows Alphabet's GOOG GOOGL $32 billion purchase of Israeli startup Wiz in March. Meanwhile, analysts have been closely watching Palo Alto Networks, with a recent report providing insights into the changing sentiments about the company. The acquisition of CyberArk is expected to further solidify Palo Alto's position in the cybersecurity industry and could potentially impact the company's stock performance in the coming months. READ MORE: If You Invested $1000 In This Stock 10 Years Ago, You Would Have This Much Today Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. CYBRCyberArk Software Ltd$432.00-0.57%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum89.44Growth11.18QualityN/AValue8.00Price TrendShortMediumLongOverviewGOOGAlphabet Inc$196.11-0.16%GOOGLAlphabet Inc$195.30-0.23%PANWPalo Alto Networks Inc$181.47-6.38%Market News and Data brought to you by Benzinga APIs

Palo Alto Networks Stock Is Falling Today: What's Going On? - Palo Alto Networks (NASDAQ:PANW)

Palo Alto Networks Inc PANW shares are trading lower Wednesday after the company announced an agreement to acquire CyberArk Software CYBR. What Happened: Palo Alto entered into a definitive agreement with CyberArk to acquire the identity security company. Shareholders of CyberArk will receive $45 in cash and 2.2005 shares of Palo Alto common stock for each CyberArk share held for an approximate equity value of $25 billion. Palo Alto said the combination will bring expertise in Identity Security and Privileged Access Management to Palo Alto's comprehensive AI-powered security platforms with the aim of extending privileged identity protection to all identity types. "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,'" said Nikesh Arora, chairman and CEO of Palo Alto Networks. "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." The transaction is expected to be immediately accretive to Palo Alto's revenue growth and gross margin. The company also expects the deal to be accretive to free cash flow per share in fiscal 2028. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get Started Both boards of directors have unanimously approved the transaction, which is expected to close during the second half of fiscal 2026. CyberArk shares jumped 13.5% on Tuesday following reports that the two cybersecurity companies were in talks regarding a potential acquisition. PANW Price Action: Palo Alto shares were down 5.8% at $182.48 at the time of publication Wednesday, according to Benzinga Pro. Read Next: Decentralized Cybersecurity Meets Crypto: What To Expect From Naoris Protocol's Token Launch Photo: Shutterstock. PANWPalo Alto Networks Inc$183.73-5.22%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum67.15Growth86.72QualityN/AValue6.62Price TrendShortMediumLongOverviewCYBRCyberArk Software Ltd$429.48-1.15%Market News and Data brought to you by Benzinga APIs

Palo Alto Networks Announces Agreement to Acquire CyberArk, the Identity Security Leader

Will Create the End-to-End Security Platform for the AI Era NEWS SUMMARY: * Will accelerate Palo Alto Networks' platform strategy by establishing Identity Security as a new core platform. * CyberArk extends Identity Security to all users by advancing the vision that every identity, human, machine and AI requires deep security for access across the modern enterprise. * Will deliver Identity Security for agentic AI to secure the new wave of autonomous AI agents by providing foundational controls for this emerging class of privileged identities. * Will provide customers with the optimal combination of best of breed technology and integrated platforms to deliver near real-time security outcomes. SANTA CLARA, Calif. and NEWTON, Mass., July 30, 2025 /PRNewswire/ -- Palo Alto Networks (NASDAQ: PANW), the global cybersecurity leader, and CyberArk (NASDAQ: CYBR), the global leader in Identity Security, today announced that they have entered into a definitive agreement under which Palo Alto Networks will acquire CyberArk. Under the terms of the agreement, CyberArk shareholders will receive $45.00 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk share. This represents an equity value of approximately $25 billion for CyberArk and a 26% premium to the unaffected 10-day average of the daily VWAPs of CyberArk as of Friday, July 25, 2025. This strategic combination will mark Palo Alto Networks' formal entry into Identity Security, establishing it as a core pillar of the company's multi-platform strategy. Combining CyberArk's long-standing leadership in Identity Security and Privileged Access Management (PAM) with Palo Alto Networks' comprehensive AI-powered security platforms will extend privileged identity protection to all identity types including human, machine, and the new wave of autonomous AI agents. CyberArk is already establishing itself as an Identity Security platform, and Palo Alto Networks will help accelerate this journey towards platformization to drive better combined security outcomes for customers. Nikesh Arora, Chairman and CEO of Palo Alto Networks, said: "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." Udi Mokady, Founder and Executive Chairman of CyberArk, said: "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." Identity and security are converging, highlighting the need for a true Identity Security platform. Securing privileged credentials for both human and machine identities -- including AI agents and workloads -- is the most critical challenge for the modern enterprise. The integration of CyberArk's Identity Security Platform with Palo Alto Networks will provide many critical benefits: * Accelerates the Platform Strategy: The combined platform will provide a single, unified solution designed to help eliminate dangerous security gaps and simplify operations. CyberArk's capabilities will be deeply integrated into Palo Alto Networks' Strata™ and Cortex® platforms, leveraging AI to deliver identity-aware security and real-time response across the entire enterprise. * Disrupts the Legacy IAM Market: This will evolve the legacy IAM market by moving beyond basic hygiene and extending robust, security-first PAM principles to ensure the right level of privilege controls are applied to every identity across the enterprise, whether humans, machines, or agents. * Secures Agentic AI: As organizations adopt autonomous Agentic AI, they are deploying the ultimate privileged users. Identity Security is positioned to become the essential framework for securing this new paradigm of the enterprise workforce. Enforcing just-in-time access and least privilege principles ensures that AI agents are granted only the permissions they need, for the exact moment they need them, providing the critical oversight necessary to secure AI-driven automation at scale. Once closed, this acquisition will unite two security leaders with similar values, strong cultures, and talented teams. The combination of the two organizations will offer the industry's most comprehensive and integrated security portfolio, providing customers with a single, trusted vendor for their most critical security needs. The combined companies will become the cyber guardian of our customers, allowing customers to focus on their core business objectives and adopting AI, while we secure their digital future. Transaction Details Under the terms of the agreement, Palo Alto Networks intends to acquire CyberArk for $45.00 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk share, which represents a 26% premium to the unaffected 10-day average of the daily VWAPs of CyberArk as of Friday, July 25, 2025. The transaction is expected to be immediately accretive to Palo Alto Networks revenue growth and gross margin. Palo Alto Networks also expects the transaction to be accretive to free cash flow per share in fiscal year 2028 following the first full year of realization of synergies. The transaction has been unanimously approved by the Boards of Directors of both Palo Alto Networks and CyberArk, and is expected to close during the second half of Palo Alto Networks' fiscal 2026, subject to the satisfaction of customary closing conditions, including the receipt of regulatory clearances and approval by CyberArk shareholders. For further information regarding the terms and conditions contained in the definitive agreement, please see Palo Alto Networks' Current Report on Form 8-K and CyberArk's Report on Form 6-K, which will be filed in connection with the transaction. Advisors J.P. Morgan Securities LLC is acting as financial advisor to Palo Alto Networks, and Wachtell, Lipton, Rosen & Katz is acting as legal counsel and Arnold & Porter Kaye Scholer LLP is acting as regulatory counsel. Qatalyst Partners is acting as financial advisor to CyberArk and Latham & Watkins LLP and Meitar Law Offices are acting as legal counsel. Shareholder letter and Investor Call Details Read the Palo Alto Networks Shareholder Letter from Chairman and CEO Nikesh Arora. Both organizations look forward to providing additional information on the transaction during an investor presentation at 6:30 am (PT) on July 30, 2025. Webcast link. Earnings Call Detail * CyberArk will forgo its Q2 2025 Earnings Call on August 7, 2025 for the above stated investor call, and has issued a press release today with their Q2 2025 financial results. * Palo Alto Networks will host its Q4 FY2025 Earnings Call via a live video webcast on August 18, 2025, at 1:30 pm (PT) accessible from the "Investors" section of the Palo Alto Networks website at investors.paloaltonetworks.com Follow Palo Alto Networks on Twitter, LinkedIn, Facebook and Instagram. Calculated based on the unaffected 10-day average of the daily VWAPs as of Friday, July 25, 2025: $196.66 per share for Palo Alto Networks, and $380.17 per share for CyberArk About CyberArk CyberArk (NASDAQ: CYBR) is the global leader in Identity Security, trusted by organizations around the world to secure human and machine identities in the modern enterprise. CyberArk's AI-powered Identity Security Platform applies intelligent privilege controls to every identity with continuous threat prevention, detection and response across the identity lifecycle. With CyberArk, organizations can reduce operational and security risks by enabling zero trust and least privilege with complete visibility, empowering all users and identities, including workforce, IT, developers and machines, to securely access any resource, located anywhere, from everywhere. Learn more at cyberark.com. About Palo Alto Networks As the global AI and cybersecurity leader, Palo Alto Networks (NASDAQ: PANW) is dedicated to protecting our digital way of life via continuous innovation. Trusted by more than 70,000 organizations worldwide, we provide comprehensive AI-powered security solutions across network, cloud, security operations and AI, enhanced by the expertise and threat intelligence of Unit 42. Our focus on platformization allows enterprises to streamline security at scale, ensuring protection fuels innovation. Explore more at www.paloaltonetworks.com. Palo Alto Networks, Cortex, Strata, and the Palo Alto Networks logo are trademarks of Palo Alto Networks, Inc. in the United States or in jurisdictions throughout the world. All other trademarks, trade names, or service marks used or mentioned herein belong to their respective owners. Any unreleased services or features (and any services or features not generally available to customers) referenced in this or other press releases or public statements are not currently available (or are not yet generally available to customers) and may not be delivered when expected or at all. Customers who purchase Palo Alto Networks applications should make their purchase decisions based on services and features currently generally available. Forward-Looking Statements This press release relates to a proposed transaction between Palo Alto Networks, Inc. ("PANW") and CyberArk Software Ltd. ("CyberArk"). This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current facts, including, without limitation, statements regarding expected future business and financial performance, the expected future benefits to PANW, CyberArk, and their respective customers from completing the proposed transaction, the anticipated future integration of PANW's and CyberArk's capabilities and the benefits they will deliver, the expected completion of the proposed transaction, the expected timing for the completion of the proposed transaction, the expected accretion to free cash flow, revenue growth and gross margin and the timing thereof and the timing of the synergies from the proposed transaction, made in this press release are forward-looking. We use words such as "anticipates," "believes," "continue," "estimate," "expects," "future," "intends," "may," "plan," and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements reflect management's current expectations and are inherently uncertain. Actual results could differ materially for a variety of reasons. There are a significant number of factors that could cause actual results to differ materially from forward-looking statements made or implied in this press release, including: the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction between PANW and CyberArk; PANW's ability to successfully integrate CyberArk's businesses and technologies; the risk that the expected benefits and synergies of the proposed transaction may not be fully achieved in a timely manner, or at all; the risk that PANW or CyberArk will be unable to retain and hire key personnel; the risk associated with CyberArk's ability to obtain the approval of its shareholders required to consummate the proposed transaction; the risk that the conditions to the proposed transaction are not satisfied on a timely basis, or at all, or the failure of the proposed transaction to close for any other reason or to close on the anticipated terms; the risk that any regulatory approval, consent or authorization that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated or that could adversely affect the expected benefits of the transaction; significant and/or unanticipated difficulties, liabilities or expenditures relating to the transaction; the effect of the announcement, pendency or completion of the proposed transaction on the parties' business relationships and business operations generally; the effect of the announcement or pendency of the proposed transaction on the parties' common or ordinary share prices and uncertainty as to the long-term value of PANW's or CyberArk's common or ordinary share; risks related to disruption of management time from ongoing business operations due to the proposed transaction; the outcome of any legal proceedings that may be instituted against PANW, CyberArk or their respective directors; developments and changes in general or worldwide market, geopolitical, economic, and business conditions; failure of PANW's platformization product offerings; failure to achieve the expected benefits of PANW's strategic partnerships and acquisitions; changes in the fair value of PANW's contingent consideration liability associated with acquisitions; risks associated with managing PANW's growth; risks associated with new product, subscription and support offerings, including product offerings that leverage AI; shifts in priorities or delays in the development or release of new product or subscription or other offerings, or the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products, subscriptions and support offerings; failure of PANW's or CyberArk's business strategies; rapidly evolving technological developments in the market for security products, subscriptions and support offerings; defects, errors, or vulnerabilities in our products, subscriptions or support offerings; PANW's customers' purchasing decisions and the length of sales cycles; PANW's competition; PANW's ability to attract and retain new customers; PANW's ability to acquire and integrate other companies, products, or technologies in a successful manner; PANW's share repurchase program, which may not be fully consummated or enhance shareholder value, and any share repurchases which could affect the price of its common stock. For additional risks and uncertainties on these and other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to PANW's and CyberArk's respective periodic reports and other filings with the Securities and Exchange Commission (the "SEC"), including the risk factors contained in PANW's and CyberArk's annual report on Form 10-K or 20-F, as applicable, periodic quarterly reports on Form 10-Q or reports of foreign private issuer on Form 6-K, as applicable. All forward-looking statements in this press release are based on current beliefs and information available to management as of the date hereof, and neither PANW nor CyberArk assumes any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made. No Offer or Solicitation This press release is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended. Additional Information about the Merger and Where to Find It In connection with the proposed transaction, PANW intends to file with the SEC a registration statement on Form S-4, which will include a proxy statement of CyberArk that also constitutes a prospectus of PANW common shares to be offered in the proposed transaction. Each of PANW and CyberArk may also file or furnish other relevant documents with the SEC regarding the proposed transaction. This press release is not a substitute for the proxy statement/prospectus or registration statement or any other document that PANW or CyberArk may file or furnish with the SEC or send to security holders in connection with the proposed transaction. The registration statement will include a definitive proxy statement/prospectus, which will be sent to shareholders of CyberArk seeking their approval of the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED OR FURNISHED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the registration statement and proxy statement/prospectus, when available, and other documents containing important information about PANW, CyberArk and the proposed transaction, once such documents are filed or furnished with the SEC through the website maintained by the SEC at www.sec.gov. Copies of the documents filed with the SEC by PANW will be available free of charge on PANW's website at www.paloaltonetworks.com or by contacting PANW's Investor Relations Department by email at [email protected]. Copies of the documents filed or furnished with the SEC by CyberArk will be available free of charge on CyberArk's website at www.cyberark.com or by contacting CyberArk's Investor Relations department by email at [email protected] or by phone at 617-558-2132. View original content to download multimedia:https://www.prnewswire.com/news-releases/palo-alto-networks-announces-agreement-to-acquire-cyberark-the-identity-security-leader-302517351.html SOURCE Palo Alto Networks, Inc.

Palo Alto to scoop up CyberArk for $25 billion to tackle AI-era threats

(Reuters) -Palo Alto Networks will buy Israeli peer CyberArk Software for about $25 billion, in its biggest deal yet, as CEO Nikesh Arora seeks to create a comprehensive cybersecurity provider to tap into rising AI-driven demand. Wednesday's cash-and-stock deal, one of the largest tech takeovers this year, underscores a consolidation in the industry as customers streamline vendors after facing breaches while relying on a patchwork of firms. It follows Alphabet's $32 billion acquisition of Israeli startup Wiz in March, and will broaden Palo Alto's cybersecurity offerings by adding identity security tools, bolstering its appeal to large enterprise customers. CyberArk investors will receive $45.00 in cash and 2.2005 shares of Palo Alto for each share they own, the companies said. The acquisition is expected to close in fiscal 2026 and will immediately add to Palo Alto's revenue growth, as well as gross margin. Palo Alto shares fell 6.6% before the bell, while CyberArk slid 1.3% after jumping 13.5% in the previous session on news of the deal. CyberArk stock is up around 30% so far this year. "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," Arora said in a statement. CyberArk specializes in privileged access management, technology that helps organizations safeguard sensitive systems by limiting and monitoring access to critical accounts. Its customers include Carnival Corp, Panasonic and Aflac. A surge in cyberattacks, including data breaches and ransomware, has driven demand for more comprehensive defenses. That has fueled interest in firms including CyberArk. The deal also comes as Palo Alto looks to accelerate its AI security push, with analysts at Scotiabank saying that it could use its large salesforce to drive adoption of CyberArk's tools -seen as critical for securing emerging agentic AI systems. (Reporting by Kritika Lamba and Aditya Soni in Bengaluru; Editing by Sriraj Kalluvila)