Palo Alto Network’s latest acquisition may be a sign that identity security is poised for a big breakout moment in the industry, according to cybersecurity professionals who recently spoke with IT Brew.
Last month, Palo Alto Networks announced that it had entered a definitive agreement to acquire CyberArk for about $25 billion in cash and stock. The deal is expected to close in the second half of Palo Alto Networks’s 2026 fiscal year, pending the “receipt of regulatory clearances and approval by CyberArk shareholders.”
She’s an icon, she’s a legend, and she is the moment. The purchase marks Palo Alto’s largest deal to date and the second largest acquisition in the cybersecurity space for the year, right behind Google’s $32 billion purchase of Wiz in March. In a statement, Palo Alto Networks CEO Nikesh Arora said the cybersecurity company’s market entry strategy has always focused on entering new business categories “at their inflection point” and that identity security was currently having its moment in the industry.
“CyberArk is the definitive leader in identity security with durable, foundational technology that is essential for securing the AI era,” Arora said. “Together, we will define the next chapter of cybersecurity.”
Hed Kovetz, CEO and co-founder of Silverfort, told IT Brew that identity security is the “next frontier” as companies are starting to realize that it’s the “last line of defense in cybersecurity.” A recent Delinea report that surveyed 300 technology leaders found that more than three-fourths (78%) of those queried were planning to increase identity security spending within the next year.
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“After years of investing a lot in cloud security and network security and endpoint security and data security, I think that the organizations realize that identity has been neglected and for too long it was relying on a patchwork of point solutions and legacy products,” Kovetz said. “So, a lot of companies and CISOs understand that identity is really the top priority.”
Ahead of the curve. Palo Alto’s recent acquisition puts it in a very “strategic position,” according to Aviatrix Chief Product Officer Chris McHenry. He told IT Brew that there are “three fundamental legs of the stool” in runtime security: network security, endpoint security, and identity. McHenry said the CyberArk acquisition is what will round off Palo Alto’s presence in all three categories.
“Being able to cover…all three of the posts of the stool is an incredibly strategic position to be in,” McHenry said. “I don’t actually think there’s any other company that has all three pillars.”
What to watch for. McHenry said the challenge ahead for Palo Alto will be how well it will be able to integrate CyberArk into its wider portfolio.
“CyberArk is a very well established company. [Palo Alto] has done a lot of growth by acquisition.” McHenry said. “To get to a place where they can deeply integrate identity into those other pillars…is going to take a lot of work for them.”