American Palo Alto Acquires Israeli CyberArk Cybersecurity Company

SadaNews Economy Translation - American company Palo Alto has acquired Israeli company CyberArk for $25 billion in cash and stock.

According to the Hebrew economic newspaper Calcalist, as translated by SadaNews Economics, this is the second deal in which Israeli companies exit the cybersecurity field, and it is also the second largest deal in the history of the Israeli technology sector, following the sale of Israeli company Wix to Google earlier this year for $32 billion.

The deal's value is reported to be 26% higher than the recent trading value of CyberArk's shares on Wall Street.

Its share price increased by 13.5% yesterday, reaching $21 billion amid reports of the anticipated deal announced today.

The deal is expected to be executed through a mix of cash and stock, with each shareholder in CyberArk set to receive $45 in cash, representing about 10% of the current price, plus 2.2 shares of "Palo Alto" for each share they possess.

The deal will remain subject to regulatory approvals and a vote from CyberArk's shareholders, and is expected to be completed in the second half of 2026.

Nir Zuk, founder and CTO of Palo Alto, had previously insisted that the cybersecurity field was the only area that did not interest him, but the evolution of artificial intelligence and the success of cyber attackers in most recent breaches made the enterprise identity management market one of the most booming sectors in cybersecurity. As interest in this field grows, CyberArk has witnessed accelerating growth and a massive increase in its stock price, which has quadrupled in the past five years.

CyberArk has been around longer than Palo Alto. While Palo Alto was founded in 2005, CyberArk was established in 1999 by Alon Cohen and Udi Mokady.

CyberArk ended 2024 with revenues reaching $1 billion, reflecting growth exceeding 30%.

This year, the company plans to achieve revenues of $1.3 billion and operational profits of $225 million, making this a positive step for Palo Alto in this context as the company itself has been growing at a much slower rate of about 15% recently.