Shares of CyberArk Software (CYBR) moved higher in after-hours trading following an announcement from Nasdaq that its pending merger with Palo Alto Networks (PANW) is on track to close ahead of the opening bell on February 11.
The exchange stated it plans to halt trading in CyberArk after the conclusion of the after-hours session on Tuesday, February 10, around 7:50 p.m. ET. If the transaction is completed as expected, the trading suspension will become effective on Wednesday, February 12.
Under the terms of the deal, CyberArk shareholders will receive $45 in cash plus 2.2005 shares of Palo Alto common stock for each share of CyberArk they own. Based on Palo Alto's recent stock price, the offer values CyberArk at approximately $410 per share. CyberArk's stock recently traded at $409.22, reflecting a gain of roughly 4.4%.
With the exchange ratio fixed, CyberArk's implied value now moves in lockstep with Palo Alto's stock price until the deal closes. Any fluctuation in Palo Alto shares directly impacts the calculated value of the acquisition, making Palo Alto's performance the primary driver for merger arbitrage funds monitoring the narrow spread between CyberArk's price and the deal's value.
CyberArk, a provider of identity security software, focuses on managing privileged access. The company's shareholders approved the acquisition last November.
While the timeline is set, the closure remains conditional upon satisfying final customary conditions. Any last-minute regulatory issues or adjustments to the trading halt schedule could alter the dynamics for event-driven traders.
Tuesday is anticipated to be the final day of trading for CyberArk shares, marking a significant milestone as the company prepares to integrate with Palo Alto Networks.
