Palo Alto Networks In Talks To Acquire Identity Security Vendor CyberArk: Report

The M&A deal under discussion would be by far the largest in Palo Alto Networks’ history if it happens, valued above CyberArk’s $20 billion market capitalization, according to the Wall Street Journal report.

Palo Alto Networks is in negotiations to acquire CyberArk in deal that would be by far the largest in the cybersecurity giant’s history if it happens, the Wall Street Journal reported Tuesday.

Identity security vendor CyberArk had a $20 billion market capitalization prior to the report, and the M&A deal under discussion with Palo Alto Networks could be worth “well above” that amount, according to the Journal’s report.

In separate email statements to CRN Tuesday, Palo Alto Networks and CyberArk each said they do not comment on “rumor or speculation.”

Palo Alto Networks has never paid more than $800 million for an acquisition in the past, wrote Shaul Eyal, a managing director and senior analyst at TD Cowen, in a note to investors last week pertaining the cybersecurity giant’s M&A strategy.

Citing sources familiar with the negotiations, the Journal reported that an M&A deal between Palo Alto Networks and CyberArk could be reached by the end of the week. The report indicated that Palo Alto Networks has been recently on the “hunt” for new acquisitions.

Palo Alto Networks has acquired at least 17 companies since 2018, most recently completing its acquisition of Protect AI, a startup focused on AI security, last week.

CyberArk, which specializes in privileged access management as well as identity and access management, has been bolstering its platform through acquisitions of its own in recent years. Those included the acquisition of machine identity vendor Venafi for $1.54 billion in 2024 and identity governance startup Zilla Security for up to $175 million in February.

CyberArk’s stock price was up 12 percent as of this writing Tuesday afternoon, to $429.64 a share.