According to people familiar with the situation, Palo Alto Networks (NASDAQ: PANW) is in advanced talks to buy Israeli cybersecurity company CyberArk Software (NASDAQ: CYBR). This could turn out to be one of the biggest tech transactions of the year.
Palo Alto Networks may finalize the deal as early as this week. Although the terms are still unknown, sources indicate that, assuming a typical acquisition premium, the deal might value CyberArk significantly higher than its current market capitalization of $20 billion. Following the news, Palo Alto Networks’ market capitalization dropped 5.21% to just under $130 billion, while CyberArk’s shares jumped 13.47%.
Palo Alto Networks approaching $20 billion deal for CyberArk
Udi Mokady founded CyberArk in 1999, and the company focuses on identity security, especially privileged access management, which is a crucial area of enterprise cybersecurity. Under current CEO Matt Cohen, the company, which serves over 10,000 customers worldwide, has switched to a subscription-based business model. Mokady is still the executive chairman of the company, which he brought public in 2014.
Palo Alto’s biggest acquisition to date would be a deal with CyberArk. In order to build an integrated security platform that can combat changing threats, including those driven by artificial intelligence, the company has actively sought acquisitions in recent years. “This is precisely why industry must change the paradigm, shifting away from today’s fragmented security landscape and towards consolidation,” said Nikesh Arora, CEO of Palo Alto Networks.
The possible deal comes after Alphabet made the biggest tech deal of 2025 so far earlier this year when it paid $32 billion to acquire Israeli cybersecurity startup Wiz. With businesses like Check Point Software, which is valued at over $23 billion, controlling a sizable portion of the market, Israel continues to be a global center for cybersecurity.
Under the more stringent antitrust scrutiny of the Biden administration, tech giants were initially reluctant to participate in large-scale M&A; however, the Trump administration has indicated a more relaxed approach. This has opened the door for more deal-making, especially in areas related to US security interests. Another illustration of that change is Salesforce’s $8 billion acquisition of Informatica in May.
If finalized, the Palo Alto–CyberArk merger would highlight the growing importance of the cybersecurity industry in the global tech scene and mark a bold move by Palo Alto to dominate enterprise security.
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