Palo Alto Networks buying CyberArk in cash-and-stock deal valued at about $25 billion

Cybersecurity firm Palo Alto Networks is shopping for CyberArk in a cash-and-stock deal valued at roughly $25 billion.

CyberArk, which is predicated in Petach-Tikva, Israel, develops software program that detects assaults on privileged accounts.

CyberArk shareholders will obtain $45 in money and a pair of.2005 shares of Palo Alto Networks widespread inventory for every share of CyberArk that they personal.

Palo Alto Networks Inc. stated Wednesday that the transaction will give it entry to the id safety market.

“Our market entry technique has all the time been to enter classes at their inflection level, and we imagine that second for id safety is now,” Palo Alto Networks Chairman and CEO Nikesh Arora stated in a press release. “This technique has guided our evolution from a next-gen firewall firm right into a multi-platform cybersecurity chief.”

Wedbush analyst Dan Ives referred to as the acquisition a “strategic dwelling run,” saying in a observe to purchasers that Palo Alto Networks is wanting “to construct an all-in-one store for all cyber options to battle the rising threats from AI whereas injecting this expertise into its broader portfolio.”

Individually CyberArk reported monetary outcomes, together with income progress of 46% within the second quarter. Adjusted revenue of 88 cents per share beat the typical analyst estimate.

The announcement is the newest buyout within the cybersecurity house this 12 months. In March Google stated that it had struck a deal to purchase cybersecurity agency Wiz for $32 billion in what could be the tech big’s biggest-ever acquisition.

The boards of each Palo Alto Networks and CyberArk have unanimously authorized the deal, which is anticipated to shut through the second half of Palo Alto Networks’ fiscal 2026. The transaction nonetheless wants approval from CyberArk shareholders.

Shares of Palo Alto Networks, which is predicated in Santa Clara, California, dropped almost 8% in morning buying and selling. CyberArk’s inventory declined 1.8%.