Palo Alto Eyes Biggest-Ever Acquisition With CyberArk Deal: Report
Synopsis
The deal could be announced as early as later this week, according to a report by The Wall Street Journal, which estimates that CyberArk could be valued at over $20 billion.
Palo Alto (PANW) is reportedly in talks to acquire Israeli cybersecurity provider CyberArk Software (CYBR) in a deal that could be valued at over $20 billion.
CyberArk’s stock jumped more than 13% in midday trade on Tuesday. On Stocktwits, retail sentiment around the stock remained firmly in ‘bearish’ territory over the past day.
Meanwhile, Palo Alto’s stock fell more than 3.5% with retail sentiment also in the ‘bearish’ zone.
The deal could be announced as early as this week, according to a report by The Wall Street Journal. The report added that if the acquisition goes through, it would mark one of the biggest technology takeovers this year and the biggest deal for Palo Alto in its history.
It estimates that the transaction could value CyberArk well above its $20 billion market value.
Palo Alto Networks today has a market value of almost $140 billion, with its share price up roughly 14% year to date. In April, it acquired Protect AI, which specializes in securing artificial intelligence (AI) and machine learning (ML) applications and models.
In May, the company’s CEO, Nikesh Arora, advocated that the cybersecurity landscape needs more consolidation.
“The cost of fragmentation is friction. Friction causes latency. Latency is the enemy of real-time cybersecurity. Now more than ever, bringing data together into a unified platform is critical. At its core, security is a data problem,” he stated during the earnings call. “This is precisely why industry must change the paradigm, shifting away from today’s fragmented security landscape and towards consolidation.”
There was also speculation that Palo Alto may be looking into acquiring SentinelOne. However, analysts pointed out that it would be “highly unlikely” given the antitrust concerns it would raise.
Read also: Apple Could Get A $65 Billion Boost From Foldable iPhone Launch In 2026, Says JPMorgan
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