Palo Alto Networks To Acquire CyberArk For $25B In Identity Security Push

The planned acquisition of CyberArk aims to provide a crucial missing piece for Palo Alto Networks’ broad cybersecurity platform, according to analysts.

Palo Alto Networks announced Wednesday that it plans to acquire identity security powerhouse CyberArk for approximately $25 billion, in what would be the largest acquisition in the cybersecurity giant’s history by far and one of the largest M&A deals in the security industry to date.

The planned acquisition aims to provide a crucial missing piece for Palo Alto Networks’ broad cybersecurity platform, analysts have said.

The deal is expected to close during the second half of Palo Alto Networks' fiscal 2026, which ends July 31, 2026. It represents Palo Alto Networks' “formal entry” into the identity security category, “establishing it as a core pillar of the company's multi-platform strategy,” the company said in a news release.

The cash and equity deal represents a 26-percent premium over CyberArk’s 10-day average share price prior to media reports posted about the negotiations Tuesday, according to the Palo Alto Networks news release.

In the release, Palo Alto Networks CEO Nikesh Arora called CyberArk the “definitive leader” in the fast-growing identity security space.

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

CyberArk specializes in privileged access management as well as identity and access management, identity governance and other categories related to protecting identities. The company acquired machine identity vendor Venafi for $1.54 billion in 2024 and identity governance startup Zilla Security for as much as $175 million in February.

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

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