Palo Alto to acquire CyberArk for $25B in landmark cybersecurity deal

Israeli-founded firms reshape global cyber landscape in second-largest local tech exit in history.

Another massive Israeli cybersecurity exit: Palo Alto Networks is acquiring CyberArk for $25 billion in an all-stock deal, marking one of the largest transactions in Israel’s tech history. The acquisition is second only to Google’s $32 billion purchase of Wiz earlier this year. The price represents a 26% premium over CyberArk’s recent Wall Street valuation. CyberArk shares surged 13% on Tuesday, reaching a market cap of $21 billion following reports of the impending deal.

The acquisition is seen as the final piece in Palo Alto’s long-term strategy to become a comprehensive “supermarket” of cybersecurity solutions. For years, Palo Alto’s founder and CTO Nir Zuk dismissed the identity management space, CyberArk’s specialty, as uninteresting. But the rise of AI, and the increasing reliance of attackers on identity-based vulnerabilities, has made the field one of the hottest sectors in cybersecurity. CyberArk has benefited accordingly, with its stock quadrupling over the past five years.

Founded in 1999 by Alon Cohen and Udi Mokady, CyberArk predates Palo Alto, which was founded in 2005. Mokady served as CEO until recently and now chairs the board. CyberArk employs nearly 4,000 people, including 1,000 in Petah Tikva, Israel. In 2024, it made a notable acquisition of its own, buying U.S.-based Venafi for $1.5 billion. That year, it posted $1 billion in revenue and grew more than 30%. In 2025, the company projected $1.3 billion in revenue and $225 million in operating profit, metrics that outpace rival SentinelOne, which was also in talks with Palo Alto.

While Palo Alto Networks is headquartered in the U.S. and led by Nikesh Arora, its origins are firmly Israeli. Founder Nir Zuk was one of Check Point’s early employees, and the company employs over 1,000 people in Israel today. The $25 billion deal is Palo Alto’s largest acquisition ever. Known for aggressive deal-making, the company has until now focused on startups, typically acquired for less than $1 billion and paid for in cash, not stock.

Trading at a market cap of $130 billion, Palo Alto’s strong share performance enables it to make this bold strategic move, reshaping the cybersecurity landscape once again.

"Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for Identity Security is now," said Nikesh Arora, Chairman and CEO of Palo Alto Networks. "This strategy has guided our evolution from a next-gen firewall company into a multi-platform cybersecurity leader. Today, the rise of AI and the explosion of machine identities have made it clear that the future of security must be built on the vision that every identity requires the right level of privilege controls, not the 'IAM fallacy'. CyberArk is the definitive leader in Identity Security with durable, foundational technology that is essential for securing the AI era. Together, we will define the next chapter of cybersecurity."

Udi Mokady, Founder and Executive Chairman of CyberArk, said: "This is a profound moment in CyberArk's journey. From the beginning, we set out to protect the world's most critical assets, with a relentless focus on innovation, trust, and security. Joining forces with Palo Alto Networks is a powerful next chapter, built on shared values and a deep commitment to solving the toughest identity challenges. Together, we'll bring unmatched expertise across human and machine identities, privileged access, and AI-driven innovation to secure what's next. This is more than a combination of technologies—it's an acceleration of the mission we began over two decades ago. I'm incredibly proud of what our team has built and deeply grateful to everyone who made this milestone possible."

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