Palo Alto Networks in talks to buy CyberArk in deal worth over $20 billion, WSJ reports
FILE PHOTO: A logo for Palo Alto Networks is seen during the KubeCon + CloudNativeCon Europe hosted by the Cloud Native Computing Foundation (CNCF) in Paris, France, March 20, 2024. REUTERS/Benoit Tessier/File Photo
Palo Alto Networks is in talks to acquire CyberArk Software in a deal that could value the Israeli cybersecurity firm at more than $20 billion, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
Shares in CyberArk rose about 13 per cent, while Palo Alto Networks' stock fell roughly 2 per cent.
The Santa Clara, California-based company could finalize a deal for CyberArk as soon as later this week, the report said.
CyberArk declined to comment on the report when contacted by Reuters. Palo Alto did not immediately respond.
Cybersecurity deal activity has been robust in recent years as large corporations have increased spending on security tools.
Google-parent Alphabet said in March it would buy Israeli cybersecurity startup Wiz for about $32 billion.
Rising competition among all-in-one cybersecurity platforms has reshaped the industry, making several companies attractive takeover targets for larger rivals and private equity firms.
As of Monday's close, CyberArk had a market capitalization of $19.3 billion, according to data compiled by LSEG.
