Piotr Swat | Lightrocket | Getty Images
Palo Alto Networks will take over Israeli identity security provider CyberArk in a deal valued at roughly $25 billion.
The California-based cybersecurity company will pay $45 a share for CyberArk, representing a 26% premium to its share price Friday.
Shares of Palo Alto fell more than 7% before the bell Wednesday, building on a 5% loss from Tuesday. CyberArk’s stock dipped 2%.
Palo Alto Networks intends to use the deal to officially penetrate the identity security market and improve its multi-layer offering for customers, the company said.
“Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for Identity Security is now,” Palo Alto CEO and chairman Nikesh Arora said in a release Wednesday.
He added that CyberArk offers a “foundational technology” necessary in the AI world.
The Wall Street Journal reported Tuesday, that both companies had held discussions over a potential deal, sending shares of CyberArk skyrocketing more than 13%.
This is breaking news. Please refresh for updates.
