WASHINGTON (dpa-AFX) - Palo Alto Networks, Inc. (PANW), a cybersecurity company, on Wednesday announced that it has signed a definitive agreement under which Palo Alto Networks will acquire CyberArk Software Ltd. (CYBR) for approximately $25 billion. The deal is set to close in the second half of fiscal 2026.
Shares of Palo Alto Networks are decreasing by around 6% in the pre-market trading.
CyberArk shareholders will receive $45.00 in cash and 2.2005 shares of Palo Alto Networks stock for each CyberArk share, representing a 26% premium to CyberArk's unaffected 10-day average VWAP as of July 25.
The deal is expected to be accretive to revenue growth, gross margin, and free cash flow per share by full-year 2028.
Palo Alto Networks is expected to accelerate CyberArk's growth into a comprehensive Identity Security platform, enhancing security outcomes through deeper integration.
The acquisition marks Palo Alto Networks' official entry into Identity Security, positioning it as a key component of its multi-platform strategy.
In the pre-market trading, Palo Alto Networks is 6.62% lesser at $181.01 on the Nasdaq.
In the pre-market trading, CyberArk Software is 0.62% lesser at $431.80 on the Nasdaq.
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