Palo Alto Networks to Acquire CyberArk for Over $20 Billion to Strengthen Identity Security Portfolio

Persistent Financial APP has learned that Palo Alto Networks (PANW.US) is in talks to acquire Israel-based network security company CyberArk Software Ltd., with the transaction valued at over $20 billion. According to sources, Palo Alto Networks may finalize the deal as early as this week.

CyberArk declined to comment, and Palo Alto Networks did not respond to a request for comment.

Earlier this year, Alphabet acquired Wiz for $32 billion, which has heightened market interest in investing in the cybersecurity sector. In April, Palo Alto Networks announced its plan to acquire Protect AI, a startup focused on providing security assurance for artificial intelligence and machine learning applications and models.

Analysts at Forrester Research Inc. believe that acquiring CyberArk will help Palo Alto Networks "complete" its product line and expand its influence in the network security platform market (providing multiple tools to customers). As currently configured, the absence of identity security capabilities is a missing piece.

Analysts at Bloomberg Intelligence Mandeep Singh and Damian Reimertz said in their report that, given the growing demand for identity management services valued at $246 billion by 2026, this acquisition has "strategic significance" for Palo Alto Networks.