Palo Alto Eyes AI Security with CyberArk Deal

In a landmark cybersecurity deal, Palo Alto Networks announced the acquisition of CyberArk for approximately $25 billion, marking its official entry into the Identity Security market. CyberArk shareholders will receive $45 in cash and 2.2005 shares of Palo Alto Networks common stock for each share, representing a 26% premium over CyberArk’s recent 10-day average.

This strategic move aims to create an end-to-end security platform tailored for the AI era, establishing Identity Security as a core pillar of Palo Alto Networks’ multi-platform approach. The integration of CyberArk’s privileged access management (PAM) and identity security capabilities with Palo Alto’s AI-powered platforms like Strata™ and Cortex® will secure human, machine, and Agentic AI identities—a new class of privileged users.

Key benefits include:

● A unified, identity-aware platform for real-time security and simplified operations.

● Evolution of the legacy IAM market, extending deep privilege controls across all identities.

● Security for autonomous AI agents, with just-in-time access and least privilege enforcement.

Nikesh Arora, CEO of Palo Alto Networks, said the acquisition aligns with their strategy to enter markets at their inflection point—now evident in identity security. Udi Mokady, Executive Chairman of CyberArk, called the deal a natural next step in their mission to protect critical assets through innovation and trust.

Once finalized in fiscal H2 2026, pending regulatory and shareholder approvals, the deal is expected to be accretive to Palo Alto’s revenue growth and free cash flow by FY2028, forming the industry's most integrated cybersecurity portfolio to secure the future of AI-driven enterprises.