(Reuters) -Palo Alto Networks (PANW) will purchase Israeli peer CyberArk (CYBR) Software program for about $25 billion, in its greatest deal but, as CEO Nikesh Arora seeks to create a complete cybersecurity supplier to faucet into rising AI-driven demand.
Wednesday’s cash-and-stock deal, one of many largest tech takeovers this 12 months, underscores a consolidation within the trade as clients streamline distributors after dealing with breaches whereas counting on a patchwork of corporations.
It follows Alphabet’s (GOOG) $32 billion acquisition of Israeli startup Wiz in March, and can broaden Palo Alto’s cybersecurity choices by including id safety instruments, bolstering its attraction to giant enterprise clients.
CyberArk buyers will obtain $45.00 in money and a pair of.2005 shares of Palo Alto for every share they personal, the businesses stated. The acquisition is predicted to shut in fiscal 2026 and can instantly add to Palo Alto’s income development, in addition to gross margin.
Palo Alto shares fell 6.6% earlier than the bell, whereas CyberArk slid 1.3% after leaping 13.5% within the earlier session on information of the deal. CyberArk inventory is up round 30% thus far this 12 months.
“The rise of AI and the explosion of machine identities have made it clear that the way forward for safety should be constructed on the imaginative and prescient that each id requires the suitable degree of privilege controls,” Arora stated in an announcement.
CyberArk makes a speciality of privileged entry administration, expertise that helps organizations safeguard delicate programs by limiting and monitoring entry to vital accounts. Its clients embody Carnival Corp, Panasonic and Aflac.
A surge in cyberattacks, together with knowledge breaches and ransomware, has pushed demand for extra complete defenses. That has fueled curiosity in corporations together with CyberArk.
The deal additionally comes as Palo Alto appears to be like to speed up its AI safety push, with analysts at Scotiabank saying that it might use its giant salesforce to drive adoption of CyberArk’s instruments -seen as vital for securing rising agentic AI programs.
(Reporting by Kritika Lamba and Aditya Soni in Bengaluru; Modifying by Sriraj Kalluvila)
