Palo Alto Networks Buys CyberArk in $25B Cybersecurity Mega-Deal

Palo Alto Networks, a leading cybersecurity company, announced on Wednesday that it will acquire Israeli peer CyberArk Software for approximately $25 billion. This deal, Palo Alto's biggest acquisition to date, is part of the company's push to become a more comprehensive provider of cybersecurity services amid growing AI-driven threats.

The acquisition follows a wave of consolidation in the cybersecurity industry, as companies look to streamline their vendors and address the increasing number of breaches they face. It comes on the heels of Alphabet's $32 billion buyout of Israeli startup Wiz in March. The CyberArk deal will broaden Palo Alto's offerings by adding identity security tools, which are seen as critical for securing emerging AI systems.

Palo Alto CEO Nikesh Arora emphasized that "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." CyberArk specializes in privileged access management, a technology that helps organizations safeguard sensitive systems by limiting and monitoring access to critical accounts.

The acquisition is expected to close in fiscal 2026 and will immediately add to Palo Alto's revenue growth and gross margins. The deal underscores the growing demand for more comprehensive cybersecurity solutions as businesses face an increasing number of data breaches and ransomware attacks.