Palo Alto Networks to Acquire CyberArk in $25 Billion Megadeal
Palo Alto Networks to acquire CyberArk in a landmark $25 billion all-stock deal, marking a major shift in cybersecurity and one of Israel's largest tech exits to date.
In one of the most significant tech deals in Israeli history, Palo Alto Networks has announced it will acquire CyberArk in a $25 billion all-stock transaction, signaling a seismic shift in the global cybersecurity sector. The acquisition marks the second-largest tech exit ever for an Israeli-founded company, following Google's $32 billion acquisition of Wiz earlier this year.
The deal values CyberArk at a 26% premium over its recent market cap. News of the transaction sent CyberArk’s shares soaring 13% on Tuesday, reaching $21 billion in market value.
Strategic Pivot: Identity Security at Center Stage
Once a skeptic of identity management, Palo Alto co-founder Nir Zuk, a pioneer in Israeli cybersecurity and an early Check Point engineer, now sees it as central to the company’s evolving vision.
“We believe that moment for Identity Security is now,” said Nikesh Arora, Chairman and CEO of Palo Alto Networks. “The future of cybersecurity must start with protecting every identity, human or machine, with precision and control. CyberArk leads that mission.”
With the rise of AI, the surge in machine-to-machine interactions, and the increase in identity-based attacks, CyberArk’s expertise in privileged access management and identity security makes it an ideal fit for Palo Alto’s goal of becoming a full-spectrum cybersecurity powerhouse.
CyberArk: From Petah Tikva to the Global Stage
Founded in 1999 by Alon Cohen and Udi Mokady, CyberArk has evolved into a global leader in identity security. With nearly 4,000 employees worldwide, including 1,000 based in Petah Tikva, the company generated over $1 billion in revenue in 2024 and is projecting $1.3 billion in 2025, along with $225 million in operating profit.
CyberArk’s $1.5 billion acquisition of U.S.-based Venafi in 2024 cemented its role as a major player in machine identity management. The company has significantly outpaced rivals like SentinelOne, which had also been in discussions with Palo Alto before the CyberArk deal closed.
Deal-Making at a New Scale
This marks Palo Alto Networks’ largest acquisition to date. Traditionally known for snapping up smaller startups for under $1 billion, this all-stock megadeal demonstrates the company's rising influence, bolstered by its $130 billion market cap, and an aggressive shift toward high-stakes consolidation.
“This is more than a merger,” said CyberArk founder and Executive Chairman Udi Mokady. “It’s the next chapter in a shared mission to defend what matters most, in an era where digital identity is everything.”
Mokady emphasized the companies’ shared values of trust, innovation, and resilience:
“Together, we’ll redefine what’s possible in AI-powered identity protection and privileged access control. It’s not just a combination of technologies, it’s an acceleration of a mission that began more than 20 years ago.”
Israeli Tech at the Forefront
The deal highlights the ongoing global relevance of Israeli-founded cybersecurity firms. Despite Palo Alto being based in California, its Israeli roots remain central: founder Nir Zuk and over 1,000 employees in Israel anchor the company’s innovation pipeline.
As cybersecurity threats grow more sophisticated and identity emerges as a critical vulnerability point, this landmark acquisition may set the tone for the next era of digital defense where AI, identity, and trust converge.