Palo Alto Networks closes $25bn acquisition of CyberArk

Palo Alto Networks has finalised its previously announced $25bn worth acquisition of CyberArk, a move intended to incorporate identity security into its core platform strategy.

The transaction, originally announced in July 2025, entitles CyberArk shareholders to receive $45 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk ordinary share. CyberArk was listed on Nasdaq prior to the closing of the deal.

With this deal, Palo Alto Networks aims to address the increasing need for comprehensive identity protection across human, machine, and AI entities within enterprises.

The integration of CyberArk’s Identity Security Platform extends privilege security measures throughout the full spectrum of organisational identities.

Palo Alto Networks reported that the acquisition will enable the company to secure all types of identities within an organisation, including human, machine, and agentic identities. The approach is designed to reduce excessive privileges and prevent lateral movement by attackers, who increasingly target identity weaknesses such as credential abuse and privilege escalation.

According to Palo Alto Networks, machine identities outnumber human identities by more than 80 to 1 within modern enterprises, while a majority of organisations acknowledge relying on outdated privilege models for human users.

Furthermore, approximately 90% of organisations have reported experiencing an identity-centric security breach. By broadening privileged access controls and enforcement, Palo Alto Networks asserts that organisations can respond more rapidly to breaches by restricting attackers’ ability to exploit excessive access.

Palo Alto Networks chairman and CEO Nikesh Arora said: “The emerging wave of AI agents will require us to secure every identity—human, machine, and agent. This is why we moved decisively by announcing our intent to acquire CyberArk last July and am excited to have product integration begin.

“For our customers, this means the end of ‘identity silos.’ They can now manage privileged access across their entire hybrid cloud environment from the same company they trust for Network Security and Security Operations—to ensure they are secure in the AI era.”

CyberArk’s suite of identity security solutions will remain available as standalone products while integration efforts proceed to embed its capabilities within the wider Palo Alto Networks ecosystem. The company noted that current customers will not experience service disruption, and it plans to accelerate development focused on resilience and security outcomes.

CyberArk CEO Matt Cohen said: “Joining forces with Palo Alto Networks creates the definitive cyber guardian for the modern enterprise. This is a win-win: our customers gain access to the world’s most comprehensive security portfolio, and our employees join a global innovation engine.

“Together, we are creating the most robust combination of proven technologies to stop identity-driven breaches.”

Palo Alto Networks also announced intentions for a secondary listing on the Tel Aviv Stock Exchange (TASE), where it will adopt the “CYBR” ticker symbol as a nod to CyberArk’s brand legacy. The company will continue trading as “PANW” on Nasdaq.

Once executed, this move would make Palo Alto Networks the largest firm by market capitalisation listed on TASE. The company reaffirmed its commitment to its Israeli research and development hub, which is its largest outside Silicon Valley.

Palo Alto Networks pointed to the merging of identity and security within enterprise settings, especially as automation and AI technologies become more prevalent. By combining CyberArk’s capabilities in identity security and privileged access management with its own AI-powered platforms, Palo Alto Networks aims to extend privileged identity protection to human, machine, and autonomous AI agent identities.

The combined companies seek to deliver a unified platform that eliminates operational security gaps and incorporates CyberArk’s tools into both the Strata and Cortex product lines. This approach is intended to transform traditional Identity Access Management practices by extending privilege controls beyond administrators to all user types.

As organisations deploy autonomously operating AI agents with sensitive access requirements, enforcing principles such as just-in-time access is considered necessary for maintaining oversight.

In January 2026, Palo Alto Networks completed the $3.35bn acquisition of Chronosphere, a cloud-native observability provider designed for AI-era data volumes. This transaction adds capability for real-time visibility into applications and infrastructure across digital estates, an area where existing tools often fail at scale in cloud environments.

Integration plans include combining Palo Alto Networks’ Cortex AgentiX technology with Chronosphere’s platform so customers can use AI agents for automatic detection and remediation of IT or security issues.

Palo Alto Networks maintains that comprehensive observability is essential for effective AI security operations. The company noted that integrating these new capabilities will help businesses transition from manual investigative work towards autonomous resolution of incidents while managing data costs effectively.

Unlock up to 35% savings on GlobalData reports

Use the code at checkout in the report store

• 20% OFF

  Buy 2 reports

  Use code:

  Bundle20

• 25% OFF

  Buy 3 reports

  Use code:

  Bundle25

• 30% OFF

  Buy 4 reports

  Use code:

  Bundle30

• 35% OFF

  Buy 5+ reports

  Use code:

  Bundle35

Valid on all reports priced $995 and above. Cannot be combined with other offers.

Still deciding what will work best for your business?

Ask our experts for help.

Enquire before buying