Cybersecurity giant Palo Alto Networks said Wednesday it has completed its $25 billion acquisition of Israel’s CyberArk and announced plans to list its shares on the Tel Aviv Stock Exchange, becoming a dual-listed company.
Palo Alto Networks, founded in 2005 by Israeli entrepreneur Nir Zuk, currently trades on the Nasdaq under the ticker PANW. The company said it intends to adopt the ticker symbol “CYBR” on the Tel Aviv Stock Exchange as a tribute to the CyberArk brand and as part of what it described as a strategic move reinforcing Israel’s role as a global cyber hub. Following the announcement, shares of the Tel Aviv Stock Exchange rose about 10%.
With a current market capitalization of approximately $115 billion, Palo Alto Networks would become the largest company listed in Tel Aviv by market value if the dual listing is completed, significantly surpassing other firms traded on the exchange.
In a statement, the company said the move builds on CyberArk’s legacy and Israel’s standing in the cybersecurity sector.
Nikesh Arora, chairman and chief executive of Palo Alto Networks, said the growing wave of artificial intelligence agents requires organizations to secure every identity, including employees, systems and AI agents.
“The emerging wave of AI agents requires us to secure every identity - of employees, systems, and agents. That is why we acted decisively when we announced last July our intention to acquire CyberArk, and I am pleased to see the beginning of the integration process between the products,” Arora said. He added that customers will benefit from moving from fragmented identity management to a unified system capable of managing advanced access permissions across hybrid cloud environments.
CyberArk CEO Matt Cohen said the merger creates a stronger cybersecurity provider for modern enterprises. He said customers will gain access to a broader portfolio of security solutions, while employees will join a global technology company focused on innovation.
Together, he said, the companies aim to combine their technologies to better defend against identity-based cyberattacks, particularly as AI-driven threats evolve.
Nir Zuk leaves Palo Alto after CyberArk deal
At the end of July, Palo Alto Networks announced it would acquire CyberArk for $25 billion, the second-largest deal in the history of Israel’s high-tech sector, surpassed only by the sale of Wiz to Google, which received final approval Tuesday.
CyberArk represents the final missing piece in Palo Alto’s effort to complete its transformation into a “supermarket” of cybersecurity solutions. Nir Zuk, Palo Alto’s founder and chief technology officer, had previously insisted that identity management — the field in which CyberArk operates — was the only area that did not interest him.
However, the rise of artificial intelligence and the way cyber attackers have carried out many of the most recent breaches have turned the enterprise identity management market into one of the hottest categories in cybersecurity. As the sector gained momentum, CyberArk enjoyed accelerated growth and a surge in its stock price, which has quadrupled over the past five years.
The acquisition is the largest in Palo Alto’s history. Although the company is known as an aggressive acquirer, it had never previously crossed the $1 billion threshold and had not bought a publicly traded company, instead favoring startups that it purchased with cash rather than shares. Palo Alto has also benefited from a strong rise in its own stock and is valued at around $130 billion, enabling it to pursue the bold move.
Just over two weeks after announcing the acquisition, Palo Alto said Nir Zuk would step down. Lee Klarich, the company’s chief product officer, will replace him as chief technology officer.
In a statement announcing his decision to retire, Zuk said: “I started Palo Alto Networks with a radical idea and the conviction to challenge a stagnant industry with a cybersecurity platform. Our vision has always been to lead from the front, and our recent intent to acquire CyberArk is a testament to that enduring ambition.
“With the most comprehensive security portfolio today, I am confident in Nikesh's leadership and thrilled to pass the torch to Lee Klarich,” he said. “He is a phenomenal technologist who will carry that competitive fire into our next chapter. This has been an incredible journey, and I leave with deep satisfaction, knowing the company we built together is stronger than ever.”