Palo Alto Networks Announces Agreement to Acquire CyberArk

In a transformative move for the cybersecurity landscape, Palo Alto Networks has announced a definitive agreement to acquire CyberArk, a global frontrunner in Identity Security. The agreement, which values CyberArk at approximately $25 billion, marks a pivotal expansion for Palo Alto Networks into the critical domain of Identity Security. Under the terms, CyberArk shareholders will receive $45 in cash along with 2.2005 shares of Palo Alto Networks common stock for each CyberArk share. This deal reflects a 26% premium on the 10-day average trading value of CyberArk prior to the announcement, signifying the strategic weight Palo Alto Networks places on this acquisition.

Strategic Expansion into Identity Security as a Core Pillar

This acquisition is more than a financial transaction, it is a signal of Palo Alto Networks’ long-term strategic vision. For years, Palo Alto Networks has focused on delivering comprehensive cybersecurity through its AI-powered platforms. The addition of CyberArk allows the company to formally embed Identity Security as a foundational pillar within its multi-platform architecture. CyberArk’s industry leadership in Privileged Access Management (PAM) complements Palo Alto Networks' broad security capabilities, extending protection to human, machine, and emerging AI identities. This alignment strengthens Palo Alto Networks' ability to respond to the rapidly evolving threat landscape, where identity remains the most exploited attack surface.

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."

Strengthening Platformization Through Integration

CyberArk has already laid the groundwork to transition from a standalone PAM provider to a full-fledged Identity Security platform. With the backing of Palo Alto Networks, that evolution will now accelerate dramatically. By embedding CyberArk’s identity-first capabilities within its AI-driven security platforms, Strata and Cortex, Palo Alto Networks intends to simplify enterprise security operations and deliver deeper, real-time, identity-aware insights. This fusion will offer customers a unified experience, addressing identity threats across diverse digital environments with greater intelligence and operational efficiency.

Challenging the Legacy IAM Framework

The integration of CyberArk's expertise directly challenges the current limitations of legacy Identity and Access Management (IAM) systems. Traditional IAM tools have largely focused on basic authentication and access workflows. In contrast, Palo Alto Networks aims to move beyond conventional hygiene and introduce security-first principles across all identities, be they human users, machine identities, or autonomous software agents. By prioritizing intelligent access control and privilege enforcement, the combined platform promises to usher in a new era of proactive identity threat defense.

Preparing for the Rise of Agentic AI

The emergence of Agentic AI systems introduces a new frontier of cybersecurity complexity. As enterprises adopt these autonomous digital agents, the concept of a “privileged user” is being redefined. Agentic AI holds unprecedented access and autonomy within digital systems, demanding a radical rethink of security frameworks. Palo Alto Networks and CyberArk will jointly establish Identity Security as the backbone of this new enterprise paradigm. Through enforcing least privilege, just-in-time access, and contextual decision-making, the combined platform will secure the most powerful identities ever introduced, those of AI agents themselves.

A Shared Vision and Culture for Secure Digital Transformation

Beyond the technology and business synergies, the acquisition brings together two companies deeply aligned in their values, mission, and culture. Both organizations are built around a shared vision of securing digital transformation at scale. Together, they will form the industry’s most comprehensive and tightly integrated security ecosystem, enabling customers to rely on a single trusted partner for all critical security needs. This unification empowers enterprises to focus on innovation and growth, while Palo Alto Networks safeguards their expanding digital footprint.

Financial Outlook and Path to Closing

The financial structuring of the deal underlines its attractiveness to both investors and shareholders. With a combination of cash and stock that delivers immediate value, the transaction is projected to be accretive to Palo Alto Networks’ revenue growth and gross margin. Importantly, it is also expected to enhance free cash flow per share by fiscal year 2028, once operational synergies are fully realized. The agreement has received unanimous approval from the Boards of Directors of both companies, and the deal is slated for completion in the latter half of Palo Alto Networks’ fiscal 2026, pending regulatory and shareholder approvals.

A Bold Step into the Future of Cybersecurity

With this acquisition, Palo Alto Networks is not merely expanding its portfolio, it is redefining what cybersecurity means in the era of intelligent machines and cloud-native infrastructures. By integrating the depth of CyberArk's identity expertise with its own expansive threat prevention capabilities, the company positions itself to offer the most holistic, future-ready security architecture in the industry. This move signals a powerful new chapter in cybersecurity, where identity and AI are at the heart of enterprise protection.