Palo Alto Networks Inc. agreed to buy CyberArk Software Ltd. in a cash-and-stock deal valuing the Israeli cybersecurity company at about $25 billion.
Palo Alto will pay CyberArk investors $45 per share and 2.2005 shares of Palo Alto stock, according to a state
ment on Wednesday.The companies said the value implies a 26% premium to CyberArk shares on a volume weighted av
erage over 10 days before the Wall Street Journal reported on the acquisition talks. The transaction is expected to close
during the second half of Palo Alto Networks’ fiscal 2026.
The deal is Chief Executive Officer Nikesh Arora’s largest since taking the helm in 2018 and gives Palo Alto Networ
ks a suite of identity security tools, which help users determine wh
o should have certain access rights within an organization. These products can also be used with artificial intelligence programs, and will be in higher demand as more
companies use AI agents to perform tasks, Bloomberg Intelligence analysts Mandeep Singh and Damian Reimertz said in a note.
Shares of CyberArk had gained 30% this year, giving it a market value of more than $21 billion. That increase inclu
des the 13% jump on Tuesday. The stock was little changed before markets opened on Wednesday. Shares of Palo Alto fell 5.9%.
Cybersecurity providers are becoming more acquisitive, with some looking to offer a full platform of produc
ts to customers that are seeking to save money by reducing vendors. Alphabet Inc. agreed to buy the cyber startup Wi
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z this year for $32 billion to add to its Google Cloud business. In April, Palo Alto announced plans to buy the st
artup Protect AI, which specializes in securing AI and machine learning applications and models.
JPMorgan Chase & Co. advised Palo Alto and Qatalyst Partners advised CyberArk.
Photo: Palo Alto Networks headquarters in Santa Clara, California. Photographer: David Paul Morris/Bloomberg