Shares of CyberArk Software Ltd. experienced a notable uptick in after-hours trading following an official notification from the Nasdaq stock exchange. The exchange confirmed that the pending acquisition of CyberArk by Palo Alto Networks is anticipated to be finalized before the market opens on Wednesday, February 11, 2026.
Final Trading Sessions and Halt Timeline
In a critical update for investors, Nasdaq announced its intention to halt trading in CyberArk shares (CYBR) after the conclusion of the after-hours session on Tuesday, February 10. The specific halt time is set for approximately 7:50 p.m. Eastern Time. Provided the merger closes as scheduled, this trading halt will remain in effect on Wednesday, February 11. Subsequently, a formal suspension of trading for CyberArk shares will be implemented effective Thursday, February 12.
This timeline effectively marks Tuesday as the final full day for public market activity in CyberArk stock. The impending closure has shifted investor focus squarely onto the mechanics and final valuation of the deal, overshadowing other corporate developments for the security software firm this week.
Deal Valuation and Shareholder Consideration
The acquisition terms entitle CyberArk shareholders to receive $45.00 in cash plus 2.2005 shares of Palo Alto Networks (PANW) common stock for each share of CyberArk they own. With the exchange ratio fixed, the final value delivered to shareholders is directly tied to the trading price of Palo Alto Networks stock at the deal's close.
Based on Palo Alto Networks' closing price of $166.00 on Monday, February 9, the implied value of the offer stands at approximately $410.28 per CyberArk share. In late trading, CyberArk shares climbed 4.4% to $409.22, bringing the stock to within a narrow margin of this theoretical value. This minimal difference, or "spread," is closely monitored by merger arbitrage funds as an indicator of the perceived certainty and smooth execution of the transaction.
Market Dynamics and Interdependence
The locked exchange ratio creates a direct and immediate correlation between the two stocks for the remainder of the process. Any fluctuation in Palo Alto Networks' share price now has a proportional and instantaneous impact on the implied value of CyberArk, regardless of company-specific news for CyberArk itself. This dynamic explains why CyberArk's stock price has been moving in near lockstep with Palo Alto's in recent sessions. A decline in Palo Alto's stock could rapidly widen the arbitrage spread, introducing volatility for event-driven traders.
Palo Alto Networks shares also saw positive movement, gaining 4.2% to $166.00 in the same after-hours session, reflecting broader market optimism regarding the strategic combination.
Strategic Rationale and Background
CyberArk is a prominent provider of identity security software, specializing in solutions that manage and monitor privileged access within organizations. The acquisition, which received shareholder approval in November 2025, is positioned as a strategic move to build a comprehensive security platform. CyberArk CEO Matt Cohen previously framed the merger as a pivotal step toward the goal of securing "every identity — human, machine, and AI," integrating CyberArk's specialized capabilities into Palo Alto Networks' broader security suite.
Despite the advanced stage and clear timeline, the closing remains conditional upon the satisfaction of customary closing conditions. Market participants are aware that unforeseen developments, such as last-minute regulatory inquiries or adjustments to the trading halt schedule, could disrupt the expected timeline and impact the final arbitrage spread, potentially triggering rapid repositioning by specialized traders.
For the investment community, Tuesday, February 10, represents the last probable opportunity to trade CyberArk shares in the open market. All eyes will be on the after-hours session leading up to the 7:50 p.m. ET halt and the subsequent confirmation that the merger has been completed ahead of the opening bell on February 11.
