Palo Alto to acquire CyberArk for $25b to advance AI-driven cybersecurity

• Deal details reveal that CyberArk’s investors will receive $45 in cash along with 2.2005 shares of Palo Alto for each share

Palo Alto Networks is making waves in the cybersecurity world with its landmark $25 billion acquisition of Israeli rival CyberArk Software.

The deal marks the largest in the company’s history and a significant move as CEO Nikesh Arora drives toward building a truly comprehensive cybersecurity powerhouse. The need for more complete, AI-driven protection is greater than ever, and Palo Alto’s latest move is a direct response to these global trends.

The cash-and-stock transaction stands out as one of the year’s most high-profile tech takeovers, reflecting the intense wave of consolidation across the cybersecurity industry.

As businesses experience more frequent and sophisticated breaches, many are eager to move away from the complexities—and vulnerabilities—of cobbling together services from multiple vendors. Instead, they’re looking for one-stop-shop solutions, which is exactly what Arora aims to deliver.

Palo Alto’s acquisition follows closely after Alphabet’s $32 billion purchase of Israeli security startup Wiz, highlighting the demand for cutting-edge defenses.

Palo Alto broadening its toolkit

By bringing CyberArk on board, Palo Alto is broadening its toolkit, especially by adding best-in-class identity security technologies. This is great news for massive enterprise clients, who now have a single provider able to tackle the growing threats that come with increased AI adoption.

The industry has seen a notable spike in cyberattacks ranging from data breaches to ransomware, prompting companies worldwide to bolster their cyber defenses.

Demand for sophisticated tools like those offered by CyberArk—which specialises in privileged access management to protect critical assets—shows no signs of slowing. Big-name customers such as Carnival Corp., Panasonic, and Aflac already rely on CyberArk’s expertise.

Deal details reveal that CyberArk’s investors will receive $45 in cash along with 2.2005 shares of Palo Alto for each share. The offer, valuing CyberArk at $495 per share, reflects a strong 29.2 per cent premium over the price before talks surfaced—an enticing proposal by any standard.

According to industry analysts, Palo Alto’s global sales muscle could significantly accelerate the adoption of CyberArk’s technology, particularly as identity security takes center stage in defending AI-powered systems.

Shared mission

International Data Corp. forecasts a substantial 12.2 per cent jump in cybersecurity spending in 2025 as companies rush to meet these intensified requirements.

Approval for the transaction has come from the boards of both companies, and the acquisition is set to close in Palo Alto’s fiscal 2026. Notably, the buyout will immediately contribute to both revenue growth and margins for Palo Alto.

Nikesh Arora shared his vision, expressing that the era of AI and machine identities means every digital identity should have precisely controlled privileges—a vision he believes CyberArk is perfectly equipped to fulfill.

For Udi Mokady of CyberArk, the deal caps a decades-long journey, emphasising the shared mission of protecting the world’s most critical digital assets.

Ultimately, this union represents more than just a merger of products: it’s an acceleration of the quest to build resilient, AI-powered defenses in a rapidly evolving digital landscape.