Palo Alto Networks seen as likely CyberArk acquirer, not SentinelOne

Canaccord believes a potential acquisition of CyberArk by Palo Alto Networks is more likely than a deal for SentinelOne. The firm sees significant synergies from a product perspective if the deal were to close. Canaccord has a Buy rating and $440 price target on Palo Alto Networks shares, which are up 12% following the report.

Palo Alto Networks, a leading cybersecurity company, is reportedly in advanced negotiations to acquire CyberArk, an Israeli cybersecurity firm, for a deal valued at $20 billion. The potential acquisition, if finalized, would be the second-largest in Israeli tech history, following Google’s acquisition of Waze [1].

CyberArk, known for its Privileged Access Management (PAM) solutions, specializes in identity security. The acquisition would align with Palo Alto Networks' strategy to strengthen its capabilities, particularly in the growing field of AI cybersecurity [2]. The deal could see Palo Alto Networks spending $405 per share, according to reports [2].

The potential acquisition has received mixed reactions from the market. CyberArk’s stock surged by around 15% after the news, while Palo Alto Networks' shares dropped by approximately 3% [1]. Jefferies analysts noted that the deal has significant merit and aligns with Palo Alto's focus on protecting the new attack surface created by AI [2].

Canaccord Genuity believes that a potential acquisition of CyberArk by Palo Alto Networks is more likely than a deal for SentinelOne. The firm sees significant synergies from a product perspective if the deal were to close. Canaccord has a Buy rating and a $440 price target on Palo Alto Networks shares, which are up 12% following the report [1].

The acquisition, if successful, would be Palo Alto Networks' second major deal of 2025, following its April acquisition of Protect AI. The deal is expected to be announced as early as this week [1].

References:
[1] https://www.ynetnews.com/business/article/hkfhxoudgg
[2] https://www.investopedia.com/palo-alto-networks-could-buy-cyberark-for-over-usd20b-report-says-11781314