In one of the largest tech deals in Israel’s history, American cybersecurity giant Palo Alto Networks has announced the acquisition of CyberArk, a global leader in identity security, in a $25 billion cash-and-stock deal. The acquisition marks a strategic leap for Palo Alto into the core of identity-based cyber defense, a field that has become increasingly critical in the age of AI-driven threats.
Founded in 1999 and headquartered in Petah Tikva, Israel, CyberArk has long been recognized as a pioneer in Privileged Access Management (PAM) and Identity Security, serving thousands of enterprise customers worldwide, including government agencies, financial institutions, and Fortune 500 companies.
💰 Deal Highlights
Under the terms of the agreement, CyberArk shareholders will receive $45 in cash and 2.2005 shares of Palo Alto Networks for each share they own. This represents a ~29% premium over CyberArk’s last closing price and values the company at approximately $25 billion.
Following the announcement, CyberArk’s stock surged by 13%, while Palo Alto’s stock fell around 8% — a common market reaction to large-scale acquisitions, reflecting short-term financial concerns versus long-term strategic potential.
🔐 Strategic Rationale
In today’s rapidly evolving threat landscape — where artificial intelligence accelerates the scale and sophistication of attacks — identity has become the first line of defense. CyberArk’s expertise in protecting privileged accounts, securing DevOps pipelines, and enforcing least-privilege access models makes it a natural fit for Palo Alto’s integrated security platform.
With this acquisition, Palo Alto strengthens its position against rivals like Microsoft, Okta, and Ping Identity, by adding a mature, enterprise-proven identity security layer to its portfolio. It also significantly expands its reach among enterprise and government clients seeking unified cyber defense capabilities.
The Second-Largest Tech Exit in Israeli History
This deal marks the second-largest exit for an Israeli tech company, just behind Google’s $32 billion acquisition of Wiz earlier this year.
CyberArk, which started as a modest Israeli cybersecurity startup, evolved into a Nasdaq-traded public company with hundreds of millions in annual revenue, strong margins, and consistent profitability. This acquisition brings CyberArk’s journey full circle — from industry pioneer to integral part of a global cybersecurity powerhouse.
The transaction has been unanimously approved by both companies’ boards and is expected to close in the second half of Palo Alto’s fiscal year 2026, subject to regulatory approvals and CyberArk shareholder consent.
Sources & Credit:
This article is based on reports by Reuters, Associated Press, Financial Times, Times of Israel, Ynet, The Economic Times, official announcements from Palo Alto Networks and CyberArk, and public market disclosures. Published July 30, 2025.
