Cybersecurity main Palo Alto Networks has signed a money and inventory deal value roughly $25bn to accumulate id safety options supplier CyberArk.
This acquisition will facilitate Palo Alto Networks’ entry into the id safety sector. Via the deal, Palo Alto Networks goals to increase its platform technique and disrupt the normal Id Entry Administration (IAM) market.
By integrating CyberArk’s capabilities into its Strata and Cortex platforms, Palo Alto Networks intends to ship identity-aware safety options throughout enterprises.
CyberArk’s platform is designed to safe human and machine identities with privilege controls and menace prevention measures. The mixing with Palo Alto Networks is predicted to supply a unified safety answer that addresses gaps in id administration and simplifies operations.
Palo Alto Networks plans to include CyberArk’s Id Safety Platform into its AI-driven safety options, thereby enhancing safety throughout human, machine, and AI-driven identities.
Palo Alto Networks chairman and CEO Nikesh Arora mentioned: “Our market entry technique has at all times been to enter classes at their inflection level, and we consider that second for Id Safety is now.
“This technique has guided our evolution from a next-gen firewall firm right into a multi-platform cybersecurity chief. At the moment, the rise of AI and the explosion of machine identities have made it clear that the way forward for safety have to be constructed on the imaginative and prescient that each id requires the best degree of privilege controls, not the ‘IAM fallacy’.”
CyberArk has individually reported monetary outcomes for Q2 2025. The corporate achieved whole income of $328m, reflecting a 46% improve year-over-year. Subscription income climbed by 66% to $263.8m, whereas GAAP internet loss widened to $90.8m from $12.9m in the identical interval final 12 months.
Underneath the phrases of the acquisition, CyberArk shareholders will obtain $45 in money and a pair of.2005 shares of Palo Alto Networks frequent inventory per share. Each CyberArk and Palo Alto Networks are listed on Nasdaq.
This deal values CyberArk at a 26% premium over its unaffected 10-day common every day volume-weighted common worth as of 25 July 2025.
CyberArk founder and government chairman Udi Mokady mentioned: “Becoming a member of forces with Palo Alto Networks is a robust subsequent chapter, constructed on shared values and a deep dedication to fixing the hardest id challenges.
“Collectively, we’ll deliver unmatched experience throughout human and machine identities, privileged entry, and AI-driven innovation to safe what’s subsequent. That is greater than a mix of applied sciences—it’s an acceleration of the mission we started over twenty years in the past.”
The acquisition is predicted to be instantly accretive to Palo Alto Networks’ income development and gross margin. The corporate anticipates that the transaction will improve free money stream per share by fiscal 12 months 2028 as synergies are realised.
The transaction has acquired unanimous approval from the boards of administrators of each corporations. It’s set to shut within the latter half of Palo Alto Networks’ fiscal 12 months 2026, pending customary situations together with shareholder and regulatory approvals.
Just lately, Palo Alto Networks accomplished the acquisition of Shield AI, thereby enhancing its choices in AI and ML safety by Prisma AIRS. This acquisition is predicted to advance Palo Alto Networks’ capabilities in securing AI growth lifecycles.
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