Palo Alto falls on $25 bln CyberArk deal

Shares of Palo Alto Networks PANW.O fall 5.9% to $182.45, a two-mth low, on Weds after CyberArk Software CYBR.O tie-up announced

PANW to buy Israeli-peer CYBR in about $25 bln cash-and-stock deal to tackle AI-era threats

CYBR investors will receive $45 in cash and 2.2005 shares of PANW for each share they own, the firms said

Acquisition expected to close in fiscal 2026 and add to PANW's rev growth, as well as gross margin

PANW shares on Tues slid ~5% on news of the deal

U.S.-listed shares of CYBR last down marginally on the session. Its stock on Tues jumped 13.5%, extending YTD gain to 30%

Guggenheim analyst John DiFucci says with the acquisition, PANW is adding CYBR's identity solutions platform to its already comprehensive suite of cybersecurity products

PANW has "a good track record" in buying and integrating smaller firms into its platform, and while there is "material risk with an acquisition of this size", he said he's optimistic given the "strategic and tactical rationale"

DiFucci currently rates PANW "sell" with $130 PT

With move on Weds, PANW shares are flat in 2025