In a historic move within the cybersecurity sector, US-based Palo Alto Networks has announced its acquisition of Israeli cybersecurity firm CyberArk Software in a cash-and-stock transaction valued at approximately $25 billion.
The deal, Palo Alto's largest to date, marks a significant consolidation in the industry, as enterprise clients seek unified security platforms amid a growing landscape of AI-driven threats. With this acquisition, Palo Alto aims to strengthen its offering by integrating CyberArk's expertise in identity security, particularly in privileged access management.
Under the terms of the agreement, CyberArk shareholders will receive \$45 in cash and 2.2005 Palo Alto shares for each CyberArk share. The transaction is expected to close during fiscal year 2026 and is projected to contribute positively to Palo Alto's revenue growth and gross margins immediately upon completion.
"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," stated Palo Alto CEO Nikesh Arora.
CyberArk, which counts Carnival Corp, Panasonic, and Aflac among its clients, has seen increased demand as organizations worldwide bolster their defenses against data breaches and ransomware attacks.
The acquisition follows a series of significant moves in the cybersecurity space, including Alphabet's \$32 billion purchase of Israeli startup Wiz earlier this year, and highlights the growing prominence of Israeli firms in global cybersecurity innovation.