Palo Alto Networks announced on February 11 2026 that it has closed its $25 billion acquisition of CyberArk, a leading Israeli identity‑security provider. The deal, which was first disclosed in July 2025, was completed with CyberArk shareholders receiving $45.00 in cash and 2.2005 shares of Palo Alto common stock for each CyberArk share, representing a premium of roughly 26% to CyberArk’s 10‑day volume‑weighted average price as of July 25 2025.
The acquisition positions Palo Alto as a full‑stack security vendor that can secure human, machine, and agentic identities across hybrid cloud environments. CEO Nikesh Arora said the move “eliminates identity silos” and gives customers a single platform to manage privileged access in the AI‑driven era. By adding CyberArk’s privileged‑access‑management expertise, Palo Alto expands its platformization strategy, which has focused on integrating network, cloud, and security‑operations products into three cohesive platforms.
Investors reacted positively to the completion, with Palo Alto’s shares rising more than 2% in pre‑market trading on February 11. The market view that the deal will deliver immediate revenue and gross‑margin accretion, and that it strengthens the company’s position against competitors such as CrowdStrike and Okta, underpinned the favorable reaction.
Arora emphasized that the acquisition “is a strategic pivot to the identity‑security market, which is accelerating as AI agents and automated systems increase the number of digital identities that need protection.” He added that the integration will “accelerate the company’s AI‑driven security platform” and that CyberArk’s technology will “continue to be available as a standalone platform while also being embedded in Palo Alto’s ecosystem.”
The transaction is expected to be accretive to Palo Alto’s revenue growth and gross margin in the short term and to free cash flow per share by fiscal 2028. Management highlighted that CyberArk’s customer base will broaden Palo Alto’s reach in the enterprise and government sectors, while the combined entity will be better positioned to monetize AI‑enabled threat detection and response. The deal also supports Palo Alto’s plan to pursue a secondary listing on the Tel Aviv Stock Exchange, potentially making it the largest company listed there.
CyberArk’s acquisition reinforces Palo Alto’s commitment to Israel’s cybersecurity innovation ecosystem, where the company already has significant R&D operations. The move also aligns with industry consolidation trends, as other major players such as Google’s acquisition of Wiz demonstrate the growing importance of identity security in the broader cybersecurity landscape.
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