Palo Alto Networks, Inc. (PANW) is set to acquire CyberArk Software Ltd. in a strategic merger that promises to enhance both companies' positions in the cybersecurity landscape. The merger agreement, dated July 30, 2025, outlines that Athens Strategies Ltd., a wholly owned subsidiary of PANW, will merge with CyberArk, with CyberArk emerging as a wholly owned subsidiary of PANW.
The financial terms of the transaction are particularly notable. CyberArk shareholders are expected to receive a combination of 2.2005 shares of PANW common stock and $45.00 in cash per ordinary share held, translating to a deal value of approximately $495 per share based on PANW's stock price prior to the announcement. As of September 24, 2025, PANW's shares were trading at $200.70, suggesting the merger's valuation may fluctuate depending on market conditions at the time of completion. Approximately 111.3 million shares of PANW stock will be issued in the merger, resulting in former CyberArk shareholders owning about 14.1% of the outstanding shares of PANW.
From a strategic perspective, this merger positions Palo Alto Networks to enhance its cybersecurity offerings while expanding its customer base and market presence. By integrating CyberArk's advanced identity security solutions, PANW aims to provide comprehensive protection against evolving cyber threats, thereby reinforcing its competitive edge in the industry.
The merger is on track to be finalized following a special general meeting of CyberArk shareholders scheduled for November 13, 2025. The approval of the merger proposal requires a simple majority vote from CyberArk’s shareholders, who will also consider a new share incentive plan designed to align employee interests with company performance post-merger.
Antitrust and regulatory approvals are anticipated to be required, as is standard for transactions of this scale, although no specific hurdles have been outlined in the filing. The CyberArk board of directors has already expressed unanimous support for the merger, emphasizing its fairness and alignment with shareholder interests.
As the deal progresses, potential impacts on shareholders, employees, and the broader market will be closely monitored. The merger is expected to generate considerable attention, with implications for PANW’s stock performance and CyberArk's operational future as the integration process unfolds.