By: Fern Sidman

The global cybersecurity industry witnessed a watershed moment this week with the announcement that Palo Alto Networks, the Santa Clara, California-based cybersecurity giant founded by American-Israeli entrepreneur Nir Zuk, will acquire Israeli identity security leader Cyber Ark in a deal valued at $25 billion. The acquisition represents not only the largest corporate purchase in Palo Alto’s history but also one of the most significant technology transactions in Israeli history–cementing the country’s status as a premier hub for digital security innovation.

As The Times of Israel reported on Wednesday, the acquisition dwarfs most previous Israeli exits and ranks just behind Google’s $32 billion purchase of Wiz earlier this year. It surpasses Intel’s $15.3 billion acquisition of Mobileye in 2017, a milestone long viewed as a high-water mark for Israeli entrepreneurship. The Cyber Ark deal is expected to reshape the competitive landscape of global cybersecurity, while further demonstrating Israel’s resilience as a magnet for innovation despite war, terrorism, and persistent regional instability.

The terms of the transaction reveal the sheer scale of the deal. Cyber Ark shareholders will receive $45 in cash and 2.2005 shares of Palo Alto Networks common stock for each Cyber Ark share. According to the information provided in the The Times of Israel report, the company’s largest institutional investors include Black Rock, FMR, and leading asset management firms such as Thomas Bravo, Invesco, and Price T. Rowe.

Traded on Nasdaq since 2014, Cyber Ark has built a $22 billion market capitalization by specializing in identity security solutions, including privileged access management for enterprise networks. Its platforms safeguard sensitive corporate information, critical infrastructure, and cloud environments against increasingly sophisticated cyberattacks.

Palo Alto Networks, founded in 2005 by Nir Zuk, went public in 2012 and today boasts a $120 billion market valuation and a global workforce of 13,000 employees, including more than 1,000 in Israel. The company has aggressively expanded its portfolio over the years, acquiring startups in areas ranging from cloud security to endpoint protection. This acquisition, however, marks the company’s largest leap forward, enabling it to integrate identity security as a new core pillar of its offerings.

Cyber Ark’s executive chairman and founder, Udi Mokady, described the acquisition as a turning point. “Joining forces with Palo Alto Networks is a powerful next chapter, built on shared values and a deep commitment to solving the toughest identity challenges,” Mokady said. His comments, as reported by The Times of Israel, emphasized that the combined companies will deliver unmatched expertise across human and machine identities, privileged access, and AI-driven innovation.

Nikesh Arora, Palo Alto’s chairman and CEO, positioned the acquisition as a response to the tectonic shifts reshaping cybersecurity. “The rise of AI and the explosion of machine identities have made it clear that the future of security must be built on the vision that every identity requires the right level of privilege controls,” he stated. Arora called Cyber Ark the “definitive leader in identity security,” arguing that its technology is indispensable for safeguarding businesses in the AI era.

Demi Ben-Ari, chief strategy officer of Israeli cybersecurity company Panorays, told The Times of Israel that the transaction reflects Palo Alto’s methodical expansion strategy. “They started with network security, then expanded into cloud and security operations. What they were missing was identity–and Cyber Ark is one of the biggest identity suites in the world,” Ben-Ari explained.

The $25 billion acquisition of Cyber Ark belongs to a pantheon of high-profile transactions that have transformed Israel’s technology landscape over the past two decades.

Google’s $32 billion acquisition of Wiz (2024): Wiz, a cybersecurity unicorn founded by former Microsoft engineers, became the largest Israeli acquisition in history when Google closed its $32 billion purchase earlier this year. As The Times of Israel report noted, the deal reflected the urgency of major technology companies to consolidate cloud security tools amid rising demand.

Intel’s $15.3 billion acquisition of Mobileye (2017): Mobileye, headquartered in Jerusalem, pioneered advanced vision-based driver assistance systems. Intel’s purchase was hailed as a transformative moment for Israel’s automotive and AI industries.

Palo Alto’s $25 billion acquisition of Cyber Ark (2025): Now the second-largest acquisition of an Israeli company, the Cyber Ark deal builds upon the country’s reputation for cybersecurity excellence, which has increasingly become its most important export sector.

Together, these deals illustrate the trajectory of Israel’s “Startup Nation” economy–from semiconductors and automotive technology to a decisive global leadership role in cybersecurity.

At the heart of this landmark acquisition are two visionaries who embody the spirit of Israel’s technology ecosystem.

Nir Zuk, Founder of Palo Alto Networks

Born in Israel, Zuk began his career as a young engineer at Check Point Software Technologies, where he honed his expertise in network security. By 2005, he founded Palo Alto Networks in California, envisioning a new model of network protection that could adapt to evolving threats. Zuk’s vision proved prescient: the company grew into a publicly traded powerhouse with a market valuation exceeding $120 billion. Despite his base in Silicon Valley, Zuk has remained deeply connected to Israel, ensuring that Palo Alto invests heavily in local R&D and maintains a strong workforce in the country.

Udi Mokady, Founder of Cyber Ark

Udi Mokady founded Cyber Ark in 1999 with a focus on securing privileged accounts, long before identity management became the critical issue it is today. Under his leadership, the company grew into a publicly traded global leader with a workforce of over 4,000 employees, including 1,200 in Israel. Mokady’s emphasis on human and machine identities placed Cyber Ark at the forefront of addressing one of cybersecurity’s fastest-growing challenges. His ability to scale a niche security concept into a multi-billion-dollar enterprise reflects both entrepreneurial foresight and the strength of Israel’s talent pool.

The acquisition also reflects broader dynamics within Israel’s technology landscape. According to the report in The Times of Israel, Palo Alto has invested over $1.5 billion in Israeli startups over the past decade, acquiring companies such as Cyvera, Light Cyber, Twistlock, Demisto, Talon Cyber Security, and Dig Security. These purchases underscore Israel’s role as a critical hub for Palo Alto’s innovation pipeline.

Cyber Ark’s continued presence in Petah Tikva and Beersheba, where its R&D center is located, ensures that Israel retains high-value employment and tax revenues from the deal. For Israel, such acquisitions do more than enrich founders and investors–they reinforce the country’s global reputation as a destination for cutting-edge technology.

Even during times of war, international investors continue to pour billions into Israeli firms. As Ben-Ari noted to The Times of Israel, the Cyber Ark deal is “a leap of faith,” signaling that despite geopolitical instability, global firms view Israel as a sustainable and vital source of innovation.

The significance of the Cyber Ark deal is magnified by the transformative impact of artificial intelligence on cybersecurity. As organizations accelerate their migration to cloud-based platforms, the number of identities–both human and non-human–has expanded dramatically. Bots, machine workloads, and automated applications now represent a large share of network traffic, each requiring sophisticated privilege management.

As The Times of Israel report explained, this “explosion of identities” has widened the threat landscape, exposing businesses to risks ranging from data theft to ransomware attacks. By integrating Cyber Ark’s privileged access management tools, Palo Alto Networks aims to deliver a holistic defense framework for its 70,000 enterprise customers worldwide.

Industry analysts believe that identity security will soon rival network and endpoint protection as a foundational pillar of enterprise defense strategies. By moving decisively into this space, Palo Alto has positioned itself as one of the most comprehensive cybersecurity platforms on the market.

The $25 billion acquisition of Cyber Ark will reverberate across Israel’s economy and technology ecosystem.

The deal confirms Israel’s position as the world’s preeminent hub for cybersecurity innovation, attracting record-setting investment despite geopolitical challenges.

With American firms such as Google, Intel, and Palo Alto acquiring Israeli companies, the transaction underscores the deep integration of the U.S. and Israeli technology sectors.

Cyber Ark’s success story provides a roadmap for Israel’s next generation of entrepreneurs, demonstrating that niche security solutions can achieve global dominance.

As The Times of Israel report noted, Palo Alto’s consistent investments in Israeli startups suggest that multinational firms will continue to see Israel as a strategic hub for research and development.

Perhaps most importantly, the acquisition sends a message that Israel’s innovation economy remains resilient–even in wartime–providing a foundation for long-term economic stability.

The acquisition of Cyber Ark by Palo Alto Networks marks a defining moment for the cybersecurity industry and for Israel’s technology sector. Valued at $25 billion, it is not just a corporate transaction but a signal to the world that Israel remains an indispensable source of innovation.

As The Times of Israel report emphasized, the deal demonstrates that even amid war and instability, Israeli companies can attract record-breaking investments. By uniting the vision of Nir Zuk with the pioneering work of Udi Mokady, the acquisition promises to redefine the future of identity security in the AI era, while solidifying Israel’s place at the heart of the global cybersecurity revolution.