Palo Alto plans larger Israeli office after CyberArk acquisition

Palo Alto Networks is exploring office space in central Tel Aviv to consolidate its Israeli operations, aiming for up to 100,000 sq m.

The company currently employs around 1,600 people in Israel, with plans to grow to about 2,600 following its acquisition of CyberArk.

Its existing leased space in Tel Aviv’s Alon Tower covers about 27,000 sq m, and combined with CyberArk’s offices in Petah Tikva, the total lease area is roughly 55,000 sq m.

The search for new space is focused on the area near Alon Tower, with potential options including Azrieli Group’s Spiral Tower, ToHa2, and Beyond Tower, which range from 130,000 to 160,000 sq m.

Palo Alto said it is in the early stages of evaluating real estate options to support future growth and employee expansion in Israel, indicating a long-term commitment to the local tech sector.

🔗 Source: Calcalist

🧠 Food for thought

Implications, context, and why it matters.

Palo Alto’s Israeli expansion tracks consolidation more than hiring

Staff in Israel rose to about 2,600 after the CyberArk deal, yet the total masks ongoing integration work.
After the roughly $25 billion acquisition of CyberArk, Palo Alto Networks cut hundreds of roles due to overlap 1.
The company has bought 12 Israeli startups, which puts Israel at the center of its M&A plans 2.
The push for a central Tel Aviv site ties to the office’s role as the main innovation base outside the U.S. headquarters, led by a Senior Vice President of Products and head of the Israel R&D Center (research and development) 3 4.

The office search fits a cybersecurity push toward fewer platforms

The real estate hunt aligns with an industry move toward consolidated security platforms.
Buying CyberArk, a profitable market leader with planned revenues of $1.3 billion, banks on customers swapping niche tools for integrated suites 5.
Palo Alto framed the deal as helping to “secure the AI era,” treating identity security as a base layer for AI systems and use cases 6.
Palo Alto calls its Israeli R&D center its largest outside Silicon Valley and a primary global hub 6.