An Israeli cybersecurity company was sold for $25 billion.

American cybersecurity giant Palo Alto Networks announced the acquisition of Israeli firm CyberArk for 25 billion dollars.

This constitutes the second-largest sale of an Israeli company in history, just a few months after Google completed the purchase of startup Wiz for $32 billion.

The agreement marks not only a record figure, but also a strategic milestone: Palo Alto Networks' formal entry into the field of digital identity security, which will become one of the central pillars of its multi-platform strategy.

The integration of both companies aims to establish a "comprehensive security shield", where Palo Alto Networks will protect organizations against external threats, while CyberArk will secure internal access.

"Today, with the explosion of digital identities driven by artificial intelligence, it has become clear that the future of cybersecurity depends on the proper control of every identity," said Nikesh Arora, chairman and CEO of Palo Alto Networks. "Together, we're going to define the next chapter of cybersecurity."

Founded in 1999 by Udi Mokady, CyberArk is one of the crown jewels of the Israeli technology industry.

A pioneer in the field of privileged access management (PAM) and identity security, the company has been key in developing solutions that allow large organizations to shield their most sensitive digital assets.

"Joining Palo Alto Networks represents a powerful new chapter, built on shared values and a deep commitment to solving the most complex identity challenges," said Mokady, who will continue to play a leadership role in the new structure.

With this agreement, Israel reaffirms its position as a key player in the global cyber industry.

The purchase of CyberArk adds to a growing list of multibillion-dollar acquisitions of Israeli startups by global technology giants. In March, Alphabet, Google's parent company, acquired Wiz for $32 billion, a firm specializing in cloud security.

The operation between Palo Alto and CyberArk not only represents a business victory for the Israeli innovation ecosystem, but also highlights the growing importance of identity-based cybersecurity in an increasingly digitalized and automated world.