Palo Alto sees significant synergies from USD25 billion Cyberark deal

30th July 2025 17:37

(Alliance News) - Palo Alto Networks Inc on Wednesday said it would acquire CyberArk Software Ltd in a USD25 billion cash-and-stock deal.

Under the terms of the agreement, CyberArk shareholders will receive USD45.00 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk share, representing an equity value of around USD25 billion.

Shares in Santa Clara, California-based cybersecurity company Palo Alto fell 5.4% to USD183.26 each in New York on Wednesday.

Shares in Israeli identity security provider CyberArk rose 0.4% to USD435.98 on Wednesday. They have risen 15% in the last week after reports of a possible deal surfaced.

Palo Alto said the "strategic combination" marks its formal entry into Identity Security, establishing it as a "core pillar of the company's multi-platform strategy."

Palo Alto said the deal is accretive to revenue growth and margin immediately post-close. It is accretive to free cash flow per share in financial 2028.

The firm said it sees significant revenue synergy potential, including cross-selling.

The deal is expected to close during the second half of Palo Alto Networks' financial 2026.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Get more news and expert articles direct to your inbox