Palo Alto Networks eyes CyberArk acquisition, WSJ reports

Palo Alto Networks is reportedly in talks to acquire Israeli cybersecurity firm CyberArk for over $20 billion.

The Wall Street Journal reported on Tuesday, citing people familiar with the matter, that 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.

Shares in CyberArk rose about 13%, while Palo Alto Networks’ stock fell roughly 2%.

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.