CyberArk Software Inc. shares gained Tuesday following a report from The Wall Street Journal suggesting that Palo Alto Networks is in talks to acquire the company for more than $20 billion.

What To Know: The potential deal would mark Palo Alto's largest acquisition to date, significantly expanding its reach in the cybersecurity industry.

According to the report, the discussions between the two companies are ongoing, though neither has publicly confirmed the potential transaction. CyberArk, which specializes in identity management software, helps organizations secure employee access to various applications.

The stock's jump on Tuesday pushed CyberArk to a record high, surpassing its previous peak set earlier this year. Palo Alto Networks shares dipped over 3% on the news.

The potential acquisition comes amid a wave of consolidation in the cybersecurity sector. Google recently announced a $32 billion purchase of Wiz, its largest acquisition on record, and Cisco completed a $28 billion acquisition of Splunk in 2023.

CYBR Price Action: CyberArk shares were up 11.5% at $427.04 at the time of writing, according to Benzinga Pro.

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