Massive Acquisition: Palo Alto Networks Spends $25 Billion to Take Over CyberArk
Palo Alto Networks, a leading cybersecurity company, has announced its acquisition of CyberArk for approximately $25 billion. This strategic move marks Palo Alto Networks' entry into the identity security market, integrating CyberArk's leadership in identity management and privileged access security into its broad cybersecurity portfolio.
The deal, valued at $25 billion, is expected to be immediately accretive to Palo Alto Networks’ revenue growth and gross margin, with accretion to free cash flow per share anticipated by fiscal year 2028. The transaction is projected to create significant financial and operational synergies, propelling growth in a rapidly expanding identity security market projected to grow over 30% annually.
The acquisition aims to establish Identity Security as a core pillar of Palo Alto Networks' multi-platform strategy. By acquiring CyberArk, Palo Alto Networks consolidates its position as the world’s largest cybersecurity company with an expanded security portfolio that now includes top-tier identity management capabilities. This move positions Palo Alto Networks to better compete against other large players investing heavily in identity and AI-enabled security solutions.
The combination of Palo Alto's AI-driven security technologies with CyberArk’s identity security expertise aims to deliver a comprehensive, integrated security platform optimized for AI-powered threats and environments. This synergy offers customers a unified vendor for core cybersecurity needs, especially as enterprises adopt AI technologies more widely.
The integration of CyberArk's Identity Security Platform with Palo Alto Networks' Strata and Cortex platforms is expected to provide a unified solution. The partnership will evolve the traditional Identity and Access Management (IAM) market by applying robust, security-first PAM principles to every identity across the enterprise.
The acquisition is expected to close in the second half of Palo Alto Networks' fiscal year 2026. The deal is awaiting regulatory approvals and shareholder consent. J.P. Morgan Securities is acting as financial advisor to Palo Alto Networks, while Qatalyst Partners is serving as the financial advisor to CyberArk. Wachtell, Lipton, Rosen & Katz is acting as legal counsel for Palo Alto Networks, and Arnold & Porter Kaye Scholer is acting as regulatory counsel. Latham & Watkins and Meitar Law Offices are providing legal counsel for CyberArk.
Udi Mokady, Founder and Executive Chairman of CyberArk, is proud of the team’s achievements and looks forward to the shared mission with Palo Alto Networks. Nikesh Arora, Chairman and CEO of Palo Alto Networks, believes the acquisition will help define the next chapter of cybersecurity. The acquisition values CyberArk at a 26% premium over its 10-day average price as of July 25, 2025. The Boards of Directors have unanimously approved the deal.
The acquisition will secure agentic AI, as organizations adopt autonomous AI agents, these become highly privileged users. The acquisition will bring together two security leaders to create a comprehensive and integrated security portfolio. The acquisition unites two companies with similar values and strong cultures, facilitating smoother integration and collaboration which is expected to accelerate innovation and customer value creation.
In sum, the acquisition allows Palo Alto Networks to become the "cyber guardian" for customers’ digital identities and infrastructure in an AI-driven security landscape, reshaping the identity security market with a comprehensive and AI-enhanced security platform. The acquisition is expected to close in the second half of Palo Alto Networks' fiscal year 2026, allowing businesses to focus on core objectives and AI adoption while ensuring their digital security.
- The acquisition of CyberArk by Palo Alto Networks is expected to propel growth in the rapidly expanding identity security market, as the deal creates significant financial and operational synergies, following the strategic move of Palo Alto Networks to position itself as a leading player in identity security.
- The combination of Palo Alto Networks' AI-driven security technologies with CyberArk’s identity security expertise aims to deliver a comprehensive, integrated security platform optimized for AI-powered threats and environments, positioning Palo Alto Networks to better compete against other large players in technology and finance investing heavily in identity and AI-enabled security solutions.
