M&A News: CyberArk Stock (CYBR) Dips as Palo Alto Jumps on Board in $25B Takeover
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CyberArk is an IT firm which provides identity security solutions to protect organizations from cyber attacks. It does this by helping firms secure sensitive information and who can access it.
It has had a stellar last three years, far outpacing the S&P 500 as threats grow.
AI Agents
According to Palo Alto, whose share price slumped 8% in early trading, the deal marks its 'formal entry' into the Identity Security sector.
'Combining CyberArk's long-standing leadership in Identity Security and Privileged Access Management (PAM) with Palo Alto Networks' comprehensive AI-powered security platforms will extend privileged identity protection to all identity types including human, machine, and the new wave of autonomous AI agents,' it said.
Palo Alto has previously warned that the development of agentic AI has brought about 'a whole new threat vector,' from automated cars to managing critical infrastructure. It believes that it is crucial to ensure that 'access points' to these agents are protected from hackers.
Nikesh Arora, Chairman and CEO of Palo Alto Networks, said: 'The moment for Identity Security is now. 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. Together, we will define the next chapter of cybersecurity.'
Udi Mokady, Founder and Executive Chairman of CyberArk, added:'Together, we'll bring unmatched expertise across human and machine identities, privileged access, and AI-driven innovation to secure what's next.'
Cyber Drive
Under the terms of the agreement, CyberArk shareholders will receive $45.00 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk share. This represents an equity value of approximately $25 billion for CyberArk.
The transaction has been unanimously approved by the Boards of Directors of both Palo Alto Networks and CyberArk, and is expected to close during the second half of Palo Alto Networks' 2026 financial year.
Palo Alto will hope the deal gives a long-term boost to its ailing share price – see below.
Israel is one of the global leaders in cybersecurity and is attracting growing interest from U.S. tech. Back in March, Alphabet (GOOGL) bought cybersecurity startup Wiz, also based in Israel, for $32 billion.
CYBR stock's consensus price target is $457.68, implying a 7.63% upside.
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