SANTA CLARA, Calif. and NEWTON, Mass. — Palo Alto Networks and CyberArk, an identity security provider, announced that they have entered into a definitive agreement under which Palo Alto Networks will acquire CyberArk.
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 an equity value of approximately $25 billion for CyberArk and a 26% premium to the unaffected 10-day average of the daily VWAPs of CyberArk as of Friday, July 25, 20251.
The acquisition marks Palo Alto Networks’ formal entry into Identity Security, establishing it as a core pillar of the company’s multi-platform strategy. Combining CyberArk’s Identity Security and Privileged Access Management (PAM) with Palo Alto Networks’ comprehensive AI-powered security platforms will extend privileged identity protection to all identity types including human, machine, and the new wave of autonomous AI agents.
“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’. CyberArk is the definitive leader in Identity Security with durable, foundational technology that is essential for securing the AI era. Together, we will define the next chapter of cybersecurity.”