CyberArk shareholders approved the acquisition by Palo Alto Networks on November 13 2025, with a 99.8% vote in favor. The deal values CyberArk at roughly $25 billion in equity, consisting of $45 cash per share plus 2.2005 shares of Palo Alto common stock for each CyberArk share. The transaction remains subject to customary closing conditions and regulatory approvals, with an expected closing date in the second half of Palo Alto’s fiscal year 2026.
The acquisition aligns with Palo Alto’s platformization strategy, adding a robust identity‑security pillar to its existing network, cloud, and security‑operations platforms. By integrating CyberArk’s privileged‑access management and identity‑governance capabilities, Palo Alto can offer a unified solution that protects human, machine, and AI identities—an increasingly critical need as AI agents and autonomous systems proliferate. The deal also creates cross‑sell opportunities, allowing Palo Alto to bundle identity security with its broader security portfolio and expand its addressable market against competitors such as Microsoft Entra and Okta.
Financially, the transaction is expected to be immediately accretive to Palo Alto’s revenue growth and gross margin. Analysts project that the combined entity will generate higher operating leverage through shared infrastructure and sales channels, while CyberArk’s high‑margin identity solutions will lift overall profitability. The deal is also positioned to enhance free‑cash‑flow per share in fiscal year 2028, as the integration of CyberArk’s technology is expected to drive incremental revenue and cost efficiencies.
Market reaction to the announcement was initially negative, driven by concerns over the $25 billion price tag and the integration risks associated with merging two large cybersecurity organizations. Despite this, many analysts highlighted the strategic fit and the importance of identity security in the AI era, viewing the acquisition as a long‑term value driver that strengthens Palo Alto’s competitive positioning and supports its platformization agenda.
Nikesh Arora, Chairman and CEO of Palo Alto Networks, said, “Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for identity security is now.” Matt Cohen, CEO of CyberArk, added, “We thank our shareholders for their strong support in approving the acquisition, and we look forward to advancing our vision of securing every identity—human, machine, and AI—through a modern platform built for the AI era.”
The approval marks a significant milestone in Palo Alto’s expansion into identity security, positioning the company to deliver a comprehensive, AI‑driven security platform that addresses the evolving threat landscape and meets the growing demand for integrated identity protection.
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