Palo Alto Networks Could Acquire Israel’s CyberArk

Palo Alto Networks is reportedly in talks to acquire an Israeli cybersecurity company in what could become one of the biggest tech deals of the year.

Cybersecurity companies are seeking the scale necessary to compete as customers increasingly demand integrated platforms rather than a patchwork of point solutions. I Photo: Palo Alto Networks

The Silicon Valley firm’s target, according to The Wall Street Journal, is CyberArk Software—based in Petach-Tikva and specializing in identity security—Andrew Nusca reported for Fortune Tech.

A deal could be announced “as soon as later this week,” according to the Journal, and is said to value the 26-year-old company “well above its roughly $20 billion market value.”

CyberArk, which has been public since 2014 and trades on the Nasdaq, saw its shares jump 15% on the news, while Palo Alto’s stock slid 5%.

The cybersecurity industry is undergoing a wave of consolidation, as companies seek the scale necessary to compete and customers increasingly demand integrated platforms rather than a patchwork of point solutions.

The rise of AI—on both sides of the ongoing cyber arms race—has only intensified that need.

Nikesh Arora, CEO of Palo Alto Networks, dubbed the trend “platformization” on an investor call early last year. Indeed, the largest tech deal of 2025 so far also came from the cybersecurity sector: Alphabet’s $32 billion acquisition of Wiz in March.