Palo Alto Networks to acquire identity security provider CyberArk in $25 billion deal

Cybersecurity giant Palo Alto Networks will acquire the Israeli identity security firm CyberArk in a deal worth about $25 billion, the companies announced on Wednesday. 

Under the terms of the agreement, Palo Alto Networks will pay investors of the publicly listed CyberArk $45 per share, as well as more than two shares of the Silicon Valley company’s stock. 

CyberArk shares jumped 13% on Tuesday after Wall Street Journal reported a deal was close, while shares in Palo Alto Networks have fallen more than 10%. 

Palo Alto CEO Nikesh Arora said in a statement that the acquisition is an attempt to get ahead of demand for identity security tools, which manage access to systems, in the artificial intelligence age. 

"Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for Identity Security is now,” he said. 

CyberArk’s tools will be used to manage permissions for AI agents as well as people, the companies said in a press release. 

“Securing privileged credentials for both human and machine identities—including AI agents and workloads—is the most critical challenge for the modern enterprise,” they said.

The deal is one of the year’s biggest in the cybersecurity business, second only to Google’s agreement in March to acquire the cloud security startup Wiz for $32 billion. That deal is under regulatory review and not expected to close until 2026.