In a landmark move set to redefine the cybersecurity landscape, Palo Alto Networks has announced a definitive agreement to acquire CyberArk, the global leader in Identity Security. The strategic acquisition, valued at approximately $25 billion, underscores the critical importance of identity protection in an increasingly AI-driven world.

Under the terms of the agreement, CyberArk shareholders will receive $45.00 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk share. This represents a 26% premium over CyberArk’s recent trading average. The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to close in the second half of Palo Alto Networks’ fiscal year 2026, pending customary regulatory and shareholder approvals.

This acquisition marks Palo Alto Networks’ official entry into the Identity Security market, establishing it as a key pillar of its expanding platform strategy. By integrating CyberArk’s robust identity and privileged access management solutions with its AI-powered security platforms, Palo Alto Networks aims to provide comprehensive protection for all identity types, including human users, machines, and AI agents.

Nikesh Arora, Chairman and CEO of Palo Alto Networks, emphasised the strategic timing of the move, stating, “The rise of AI and the explosion of machine identities make it clear that Identity Security is the next frontier. CyberArk’s proven capabilities are essential to securing this future, and together, we will build the most advanced end-to-end security platform of the AI era.”

CyberArk, a pioneer in Identity Security, has long been at the forefront of protecting privileged access across the enterprise. Founder and Executive Chairman Udi Mokady called the acquisition a “profound moment,” highlighting the synergy in vision and values between the two companies. “Together, we will secure the next wave of digital transformation—anchored by innovation, trust, and a shared mission,” Mokady said.

The combined entity aims to disrupt the legacy Identity and Access Management (IAM) market by extending just-in-time access and least privilege principles to all enterprise identities, including autonomous AI agents. By integrating CyberArk’s identity capabilities with Palo Alto Networks’ Cortex® and Strata™ platforms, the joint offering will deliver identity-aware security, real-time response, and simplified operations.

The transaction is expected to be immediately accretive to Palo Alto Networks’ revenue growth and gross margins, with synergies anticipated to boost free cash flow per share by fiscal year 2028.

Industry analysts see the merger as a pivotal step toward creating a unified security framework for modern enterprises, especially as identity becomes the new battleground for cyber threats. With complementary technologies and cultures, the integration of Palo Alto Networks and CyberArk is poised to set a new standard in safeguarding digital identities—human, machine, and AI alike.

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