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Palo Alto Network Will take over Israeli identity security providers Cybera in a deal worth about $25 billion.
The California-based cybersecurity company will pay shareholders $45 in 2.2005 shares of 2.2005 shares, a 26% premium on Friday’s share price. The transaction is expected to be completed during the Palo Alto Networks in fiscal 2026.
Palo Alto's shares fell more than 7%, down to 5% from Tuesday. Cyberark shares fell 2%.
“Our market entry strategy has been entering categories at its inflection point, and we believe the moment of identity security is now,” Palo Alto CEO and Chairman Nikesh Arora said in a press release on Wednesday.
After a relatively slow transaction period, the sensational cybersecurity transactions are a force in the merger and acquisition market in 2025. In March, Google raised $32 billion for Cloud Security Startup Wiz in its largest acquisition of all time.
The company said Palo Alto Networks intends to use the deal to formally penetrate the identity security market and improve the multi-layered products it offers its customers.
He added that Cyberark provides the necessary “basic technology” in the AI world.
The Wall Street Journal reported on Tuesday that both companies discussed a potential deal, with shares sending Cebras soaring more than 13%.
Cyberark, which was publicly released more than a decade ago, created identity software tools to give employees access to platforms and applications. As artificial intelligence evolves, these tools have become even more critical to protecting businesses from cyber and ransomware threats.
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Palo Alto Network and Cyberak's 5-day inventory chart.