Cybersecurity giant Palo Alto Networks set to purchase Identity Security leader CyberArk
In a strategic move, Palo Alto Networks has announced its acquisition of CyberArk for approximately $25 billion. This marks Palo Alto's first foray into the realm of identity security, integrating CyberArk’s leadership in identity management with Palo Alto’s broader cybersecurity portfolio.
CyberArk specializes in identity security, a crucial area that focuses on protecting privileged accounts and credentials, commonly targeted in cyberattacks. With this acquisition, Palo Alto Networks aims to provide zero trust security models that tightly control and monitor identity access, enhancing their ability to secure digital identities, a foundational element for AI-driven automation and cloud environments requiring strong, adaptive access controls.
The deal is expected to be immediately accretive to Palo Alto Networks’ free cash flow per share in fiscal year 2028. Strategically, it enables Palo Alto Networks to offer a single trusted vendor that secures not just networks and endpoints but also identity, often described as the new perimeter in cybersecurity. The combined company aims to position itself as a "cyber guardian" for customers, helping organizations adopt AI technologies securely by protecting identity and access across all environments.
The acquisition is also expected to be materially accretive to Palo Alto Networks’ revenue growth and margins, reflecting expected strong synergies from combining Palo Alto’s existing security portfolio with CyberArk’s identity expertise.
Founder and Executive Chairman of CyberArk, Udi Mokady, said that joining forces with Palo Alto Networks is a powerful next chapter in CyberArk's journey. The integration will extend CyberArk's privileged access management (PAM) to include identities, agentic AI, and workloads, integrating into Palo Alto's broader AI security portfolio.
The deal is expected to close in the second half of Palo Alto's FY2026, pending regulatory approval and CyberArk shareholder consent. Nikesh Arora, Chairman and CEO of Palo Alto Networks, stated that the company's market entry strategy has always been to enter categories at their inflection point, and the moment for Identity Security is now.
Recently, Palo Alto Networks announced plans to acquire CyberArk and has also acquired Protect AI to shore up its AI portfolio. 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.
[1] Palo Alto Networks to acquire CyberArk for $25 billion, enhancing position in evolving cybersecurity landscape (Reuters) [3] Palo Alto Networks acquires CyberArk for $25 billion, aiming to create industry-leading cybersecurity platform (TechCrunch) [5] Palo Alto Networks' acquisition of CyberArk: What it means for the future of cybersecurity (Forbes)
- Palo Alto Networks, with its recent acquisition of CyberArk for $25 billion, is aiming to provide zero trust security models that tighten control and monitor identity access, a move that potentially fortifies their position in the cybersecurity landscape, particularly in the realm of AI-driven automation and cloud environments.
- As Palo Alto Networks moves to acquire CyberArk, the merged company seeks to elevate its presence as a "cyber guardian" for customers, helping organizations securely adopt AI technologies by protecting identity and access across all environments, a crucial element for the evolving world of finance, business, and technology.
