Palo Alto Networks recently announced plans to acquire CyberArk, marking the company's first foray into the realm of identity security.
CyberArk's privileged access management (PAM) will integrate into Palo Alto's broader AI security portfolio, including its Strata and Cortex platforms. This will extend PAM to include identities (human or otherwise), agentic AI, and workloads and enable real-time response.
"Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for Identity Security is now," said Nikesh Arora, Chairman and CEO of Palo Alto Networks. This strategy has guided our evolution from a next-gen firewall company into a multi-platform cybersecurity leader.
Today, the rise of AI and the explosion of machine identities have made it clear that the future of security must be built on the vision that every identity requires the right level of privilege controls, not the 'IAM fallacy'."
This deal, reflective of the broader trend towards cybersecurity platform consolidation, emphasizes the growing importance of real-time identity context and response in the age of AI. Palo Alto also recently acquired Protect AI to shore up its AI portfolio.
"The recent move by Palo Alto Networks only reinforces what we’ve long known: identity security is not just a component of cybersecurity—it is cybersecurity," said Marc Maiffret, CTO at BeyondTrust. "Identity security must be at the core of every modern security strategy."
Transaction Details
The transaction is valued at approximately $25 billion. CyberArk shareholders will receive $45 in cash and 2.2005 shares of Palo Alto Networks stock per CyberArk share.
The deal, which is expected to close in the second half of Palo Alto's FY2026, is pending regulatory approval and CyberArk shareholder consent. Palo Alto expects the transaction to be immediately accretive to free cash flow per share in fiscal year 2028.
CyberArk has released O2 2025 financial results alongside the announcement and will not host its usual earnings call on August 7. Palo Alto Networks will report Q4 FY2025 results on August 18.
Founder and Executive Chairman of CyberArk, Udi Mokady, said, "This is a profound moment in CyberArk's journey. From the beginning, we set out to protect the world's most critical assets, with a relentless focus on innovation, trust, and security.
Joining forces with Palo Alto Networks is a powerful next chapter, built on shared values and a deep commitment to solving the toughest identity challenges. I'm incredibly proud of what our team has built and deeply grateful to everyone who made this milestone possible."
