Palo Alto Networks is in talks to purchase CyberArk for over $20 billion

Palo Alto Networks is in talks to acquire CyberArk Software to help address its cybersecurity issues. The deal is expected to increase the Israeli cybersecurity firm’s valuation to over $20 billion.

CyberArk saw its shares skyrocket after the news, surpassing its all-time high in February. At publication, the company’s shares jumped more than 12% in the last 24 hours to reach $428.72. 

Palo Alto Networks saw a dip in its share price, dropping nearly 5% in the last 24 hours to reach $194.60 at publication. The firm’s shares are now up roughly 9% for the year.

Palo Alto Networks continues its acquisition spree

Breaking: Palo Alto Networks is reportedly close to buying CyberArk $CYBR for $20B+ (WSJ).

For context: $PANW ’s largest deal so far was Expanse at $1.25B in 2020.

Here's a look at how CyberArk makes money. pic.twitter.com/ehczx9eMq7

— App Economy Insights (@EconomyApp) July 29, 2025

The Wall Street Journal reported on Tuesday, citing people familiar with the matter, that Palo Alto Networks wants to buy CyberArk for over $20 billion. The report also revealed that the California-based firm could finalize the deal for CyberArk later this week. 

The American multinational cybersecurity company has grown into the biggest player in the cybersecurity industry by market cap in recent years. Data from LSEG showed that the company currently has a valuation of over $130 billion, while CyberArk has a market capitalization of around $19.3 billion.

The acquisition could also be Palo Alto Networks’ biggest bet yet, as its CEO Nikesh Arora, who was appointed to the job in 2018, adds to his spending spree. The firm helps other companies with technology that eases the process of logging on to applications for employees.

The report revealed that the acquisition would help Palo Alto Networks offer end-to-end solutions for an industry where 81% of security leaders believe machine identity security is critical for protecting AI systems. The security company previously acquired machine identity management firm Venafi, which has already positioned itself as a leader in identity governance.

The Israeli security company garnered around $11.5 million in net income during the first quarter. The firm’s revenue increased by 43% from a year earlier to $318 million. Palo Alto Networks recorded free cash flow of $96 million in Q1 2025, but still operates at a net loss. 

The rise in artificial intelligence is expected to boost the identity security market to over $40 billion by 2027. Cybersecurity has also seen a rise in deal activities in recent years as large corporations have increased spending on security tools.

Tech giant Alphabet revealed one of its largest acquisition plans in March to acquire Israeli cybersecurity startup Wiz for about $32 billion. Cisco also closed a $28 billion deal in 2023 to acquire Splunk in one of its biggest deals ever in the security sector.

Palo Alto Networks acquires Protect AI

Palo Alto Networks also acquired Protect AI on July 22 for roughly $500 million. The cybersecurity firm acknowledged that it would integrate the AI company into its newly launched AI-native security platform.

“Our vision has always been to make AI secure, safe, and trustworthy for everyone. With Palo Alto Networks’ global reach, deep cybersecurity expertise, and commitment to innovation, we can accelerate this vision exponentially.”

–Ian Swanson, CEO of Protect AI.

The cybersecurity powerhouse also said the platform aims to shield organizations from emerging threats like prompt injection, model manipulation, and other risks that traditional cybersecurity tools often overlook. Swanson argued that the company seeks to help organizations secure the most important technology in the industry. 

Cybersecurity experts have warned of a growing AI threat, with HiddenLayer reporting in 2024 that nearly 75% of enterprises experienced at least one AI-related breach last year. Swanson also commended his team, investors, and growing industry urgency for helping the company build what he believes are “category-leading solutions.”

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