Palo Alto Networks in talks to acquire identity security vendor CyberArk: Report

The M&A deal under discussion would be by far the largest in Palo Alto Networks’ history if it happens, valued above CyberArk’s $20bn market capitalisation

Palo Alto Networks is in negotiations to acquire CyberArk in deal that would be by far the largest in the cybersecurity giant’s history if it happens, the Wall Street Journal reported Tuesday.

Identity security vendor CyberArk had a $20bn (£14.97bn) market capitalisation prior to the report, and the M&A deal under discussion with Palo Alto Networks could be worth “well above” that amount, according to the Wall Street Journal’s report.

In separate email statements to CRN Tuesday, Palo Alto Networks and CyberArk each said they do not comment on “rumour or speculation.”

Palo Alto Networks has never paid more than $800m for an acquisition in the past, wrote Shaul Eyal, an MD and senior analyst at TD Cowen, in a note to investors last week pertaining the cybersecurity giant’s M&A strategy.

Citing sources familiar with the negotiations, the Wall Street Journal reported that an M&A deal between Palo Alto Networks and CyberArk could be reached by the end of the week.

The report indicated that Palo Alto Networks has been recently on the “hunt” for new acquisitions.

Palo Alto Networks has acquired at least 17 companies since 2018, most recently completing its acquisition of Protect AI, a startup focused on AI security, last week.

CyberArk, which specialises in privileged access management as well as identity and access management, has been bolstering its platform through acquisitions of its own in recent years.

Those included the acquisition of machine identity vendor Venafi for $1.54bn in 2024 and identity governance startup Zilla Security for up to $175m in February.

CyberArk’s stock price was up 12 per cent as of this writing Tuesday afternoon, to $429.64 a share.

This article originally appeared on CRN UK sister website CRN.