Palo Alto Networks Acquires CyberArk for $25B in Largest Cybersecurity Deal Ever

Palo Alto Networks has agreed to acquire CyberArk for $24.9 billion in a deal that targets rising AI-driven threats. The acquisition expands Palo Alto's presence in the identity security space. Analysts have adjusted their price targets for Palo Alto Networks following the acquisition.

Palo Alto Networks, the global cybersecurity leader, has announced a definitive agreement to acquire CyberArk, the leading identity security provider, for $24.9 billion. The acquisition aims to bolster Palo Alto's capabilities in the rapidly evolving AI-driven threat landscape. The deal, valued at $25 billion for CyberArk, represents a 26% premium to the unaffected 10-day average of the daily VWAPs of CyberArk as of July 25, 2025 [1].

The acquisition will accelerate Palo Alto Networks' platform strategy by integrating CyberArk's Identity Security and Privileged Access Management (PAM) capabilities into its existing AI-powered security platforms. This integration will extend privileged identity protection to all identity types, including humans, machines, and autonomous AI agents [1].

CyberArk's AI-powered Identity Security Platform applies intelligent privilege controls to every identity with continuous threat prevention, detection, and response. This will enhance Palo Alto Networks' ability to secure agentic AI, the new wave of autonomous AI agents that require deep security for access across modern enterprises [1].

Nikesh Arora, Chairman and CEO of Palo Alto Networks, commented, "Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for Identity Security is now. 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" [1].

Udi Mokady, Founder and Executive Chairman of CyberArk, added, "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. Together, we'll bring unmatched expertise across human and machine identities, privileged access, and AI-driven innovation to secure what's next. This is more than a combination of technologies—it's an acceleration of the mission we began over two decades ago" [1].

Analysts have adjusted their price targets for Palo Alto Networks following the acquisition, reflecting the potential synergy and expanded capabilities in the identity security space. The transaction is expected to be immediately accretive to Palo Alto Networks' revenue growth and gross margin, and is anticipated to be accretive to free cash flow per share in fiscal year 2028 following the first full year of realization of synergies [1].

The acquisition is subject to customary closing conditions, including the receipt of regulatory clearances and approval by CyberArk shareholders. The transaction is expected to close during the second half of Palo Alto Networks' fiscal 2026 [1].

References:
[1] Palo Alto Networks. (2025, July 30). Palo Alto Networks Acquires CyberArk for $24.9 Billion. Retrieved from https://www.paloaltonetworks.com/company/press/2025/palo-alto-networks-announces-agreement-to-acquire-cyberark--the-identity-security-leader