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CyberArk, which is based in Petach-Tikva, Israel, develops
software that detects attacks on privileged accounts.
CyberArk shareholders will receive $45 in cash and 2.2005 shares
of Palo Alto Networks common stock for each share of CyberArk
that they own.
Palo Alto Networks Inc. said Wednesday that the transaction will
give it access to the identity security market.
“Our market entry strategy has always been to enter categories
at their inflection point, and we believe that moment for
identity security is now," Palo Alto Networks Chairman and CEO
Nikesh Arora said in a statement. “This strategy has guided our
evolution from a next-gen firewall company into a multi-platform
cybersecurity leader.”
Wedbush analyst Dan Ives called the acquisition a “strategic
home run,” saying in a note to clients that Palo Alto Networks
is looking “to build an all-in-one shop for all cyber solutions
to battle the rising threats from AI while injecting this
technology into its broader portfolio.”
Separately CyberArk reported financial results, including
revenue growth of 46% in the second quarter. Adjusted profit of
88 cents per share beat the average analyst estimate.
The announcement is the latest buyout in the cybersecurity space
this year. In March Google said that it had struck a deal to buy
cybersecurity firm Wiz for $32 billion in what would be the tech
giant’s biggest-ever acquisition.
The boards of both Palo Alto Networks and CyberArk have
unanimously approved the deal, which is expected to close during
the second half of Palo Alto Networks’ fiscal 2026. The
transaction still needs approval from CyberArk shareholders.
Shares of Palo Alto Networks, which is based in Santa Clara,
California, dropped nearly 8% in morning trading. CyberArk's
stock declined 1.8%.
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