Palo Alto Acquires CyberArk for Identity Security Lead

Palo Alto Networks has announced a definitive agreement to acquire CyberArk for approximately $25 billion, marking a strategic expansion into the Identity Security domain to lead AI-Era Identity Domain. Under the terms, CyberArk shareholders will receive $45 in cash and 2.2005 shares of Palo Alto Networks stock per share, reflecting a 26% premium over the 10-day average price.

This move aims to create a comprehensive security platform purpose-built for the AI era. By integrating CyberArk’s privileged access management (PAM) capabilities with Palo Alto’s AI-driven platforms such as Strata™ and Cortex®, the combined solution will secure all forms of identity—human, machine, and autonomous AI agents.

The acquisition positions Palo Alto Networks to disrupt the legacy Identity and Access Management (IAM) market by enforcing just-in-time access and least privilege controls across all digital identities. It simplifies security operations with a unified platform capable of delivering real-time, identity-aware protection.

CEO Nikesh Arora emphasized the deal reflects their strategy to enter markets at a pivotal moment, with Identity Security becoming critical in the AI landscape. CyberArk’s Executive Chairman Udi Mokady sees this as a continuation of their mission to safeguard the world's most sensitive assets.

Expected to close in fiscal H2 2026, the transaction is anticipated to boost Palo Alto Networks' revenue and free cash flow by FY2028, creating one of the industry’s most integrated cybersecurity portfolios designed to secure the next generation of digital enterprises.