Palo Alto Networks has agreed to acquire Israeli cybersecurity firm CyberArk Software in a cash-and-stock transaction valued at about $25 billion, making it the California company’s largest purchase and one of the biggest technology takeovers of 2025. The boards of both companies have unanimously approved the deal, which is intended to broaden Palo Alto’s portfolio beyond network and cloud protection. Under the terms, CyberArk shareholders will receive $45 in cash and 2.2005 Palo Alto shares for each CyberArk share they own. The package values CyberArk at roughly $495 a share—about a 26% to 29% premium to its price before news of the negotiations emerged. Closing is targeted for the second half of Palo Alto’s fiscal 2026, pending regulatory and shareholder approvals. CyberArk is a leader in privileged-access management, a segment viewed as critical as companies confront a surge in machine identities created by artificial-intelligence systems. “The rise of AI and the explosion of machine identities have made it clear that every identity requires the right level of privilege controls,” Palo Alto Chief Executive Officer Nikesh Arora said in announcing the transaction. Investors were cautious: Palo Alto stock fell roughly 8% after the announcement, while CyberArk, which had jumped about 13% on earlier reports of the talks, traded little changed. The deal continues a wave of consolidation in cybersecurity, coming four months after Alphabet agreed to buy Israeli startup Wiz for $32 billion, as large vendors race to offer end-to-end security platforms.