Palo Alto Networks, Inc. (PANW), a leading cybersecurity firm, has announced its intention to acquire CyberArk Software Ltd. (CYBR), a prominent player in the cybersecurity sector, in a merger agreement dated July 30, 2025. This strategic move, which will see CyberArk merge into Athens Strategies Ltd., a wholly owned subsidiary of Palo Alto Networks, is expected to create a robust entity focused on delivering advanced cybersecurity solutions.
Under the terms of the merger agreement, CyberArk shareholders will receive a total consideration of 2.2005 shares of PANW common stock and $45.00 in cash for each ordinary share held. Based on the closing stock price of PANW on September 24, 2025, which was $200.70, the total value equates to approximately $486.64 per CyberArk share.
This merger is strategically aligned with Palo Alto Networks' objective to expand its product portfolio and market presence in the cybersecurity domain. The combined capabilities of both companies are anticipated to enhance their competitive edge, drive innovation, and provide comprehensive solutions to customers facing increasingly complex security challenges.
The CyberArk board of directors has unanimously recommended the merger to its shareholders, asserting that the transaction is in the best interests of the company and its stakeholders. A special general meeting is scheduled for November 13, 2025, where CyberArk shareholders will vote on the merger proposal, which requires a simple majority for approval.
Following the merger, Palo Alto Networks is expected to issue approximately 111.3 million shares of its common stock, resulting in former CyberArk shareholders owning about 14.1% of the combined company's outstanding shares. This transaction represents a significant strategic opportunity for both companies, enhancing shareholder value and operational synergies.
Regulatory approvals are required for the merger to proceed, and the companies are working to ensure compliance with all applicable laws and regulations. The anticipated closing of the merger depends on shareholder approval and the satisfaction of customary closing conditions.
As the cybersecurity landscape continues to evolve, this acquisition positions Palo Alto Networks to leverage CyberArk’s expertise and solutions, ultimately benefiting employees, shareholders, and customers alike by delivering enhanced security offerings and creating a more resilient organization.