Palo Alto Networks will acquire Israeli cybersecurity firm CyberArk for ₹2.08 lakh crore ($25 billion), in what is now the largest acquisition of an Israeli company to date. The Santa Clara-based cybersecurity giant confirmed the cash-and-stock agreement Wednesday, marking its largest deal ever.
CyberArk shareholders will receive ₹3,755 ($45) in cash and 2.2005 shares of Palo Alto stock for each share they hold. The publicly traded firm, with a market capitalisation of nearly ₹1.83 lakh crore ($22 billion), is known for its specialisation in identity security, particularly in managing privileged access accounts for enterprise infrastructure.
The acquisition arrives amid ongoing regional conflict in Israel, underlining continued global investor confidence in Israeli innovation. CyberArk, headquartered in Petah Tikva with an R&D base in Beersheba, employs over 1,200 people in Israel and more than 4,000 globally.
Deal Positions Palo Alto to Secure AI-Driven Identity Threats
Palo Alto CEO Nikesh Arora said the integration of identity security into its platform is a strategic move to prepare clients for threats emerging from artificial intelligence, automation, and expanding digital identities. The company, valued at ₹10 lakh crore ($120 billion), will integrate CyberArk’s offerings to better address rising risks posed by machine identities and hybrid cloud environments.
CyberArk was founded in 1999 by Udi Mokady, who called the merger a “profound moment” in the company’s journey. He emphasised that the deal represents not just a technological integration but a shared mission to secure both human and machine identities in modern digital ecosystems.
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Despite regional instability, Palo Alto has steadily expanded its Israeli footprint. In the past year alone, it acquired Talon Cyber Security for ₹50,04 crore ( $600 million) and Dig Security for ₹33,36 crore ($400 million). Previous acquisitions include Twistlock ₹3,423 crore ($410 million), Demisto ₹4,676 crore ($560 million), and Cyvera ₹1,670 crore($200 million).
The acquisition is expected to close in the second half of Palo Alto’s fiscal 2026, pending regulatory approval and shareholder consent. CyberArk’s operations and personnel in Israel are expected to remain intact post-merger.