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Cybersecurity M&A Heats Up as Palo Alto Acquires CyberArk in $25B Deal

By  |  July 30, 2025

Palo Alto Networks has announced plans to acquire Israeli identity security firm CyberArk in a transaction valued at approximately $25 billion. The deal, unveiled Wednesday, underscores Palo Alto’s ambitions to expand its footprint in the growing identity protection market—a segment that’s becoming increasingly vital amid rising artificial intelligence (AI) threats.

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    According to CNBC, the agreement will see CyberArk shareholders receive $45 in cash and 2.2005 shares of Palo Alto Networks stock for each CyberArk share. The acquisition is expected to finalize during Palo Alto’s fiscal year 2026, pending regulatory approvals.

    Palo Alto Networks CEO Nikesh Arora described the move as timely, emphasizing the identity market’s pivotal role as digital threats continue to evolve. “They are poised to go and disrupt this market and create the platform we need and also solve the upcoming problem with agentic AI,” Arora told CNBC’s Squawk on the Street. “From all those factors, we believe this is the right time to do something like this and be ready for the market in the next 12 to 18 months.”

    Per CNBC, the acquisition comes amid a resurgence in high-profile cybersecurity mergers and acquisitions in 2025. Earlier this year, Google completed its largest purchase to date, acquiring cloud security firm Wiz for $32 billion. The trend reflects growing enterprise demand for more sophisticated tools to safeguard digital identities and infrastructure.

    Read more: Justice Department Scrutinizes Google’s $32 Billion Bid for Cybersecurity Firm Wiz

    CyberArk, which debuted on public markets over a decade ago, specializes in identity access software that allows employees secure entry into applications and systems. The company competes with major players such as Okta and Microsoft in a field that has become central to defending against cyberattacks, particularly as generative AI raises the stakes for digital threats.

    By integrating CyberArk’s tools into its broader cybersecurity suite, Palo Alto Networks aims to offer a more comprehensive solution to its clients. Arora explained to CNBC that Palo Alto’s scale and global reach could help rapidly expand the impact of CyberArk’s technology.

    Since Arora took over leadership of Palo Alto Networks in 2018, the company has aggressively broadened its portfolio and now commands a market valuation of around $120 billion.

    Source: CNBC