Palo Alto Networks to acquire Embrace to expand observability tools

Palo Alto Networks (NASDAQ: PANW) announced its intent to acquire Embrace, a provider of Real User Monitoring (RUM) technology, to add user experience monitoring capabilities to its Observability platform, according to a company press release.

The company is also introducing Synthetics, a new capability developed internally by its Autonomous Digital Experience Management (ADEM) team, designed to proactively validate application performance from locations across its globally distributed infrastructure.

The two additions are intended to extend the Palo Alto Networks Observability platform into Digital Experience Monitoring, combining end-user interaction data with backend infrastructure visibility in a single interface.

The acquisition follows Palo Alto Networks' purchase of Chronosphere in January 2026. The company reported its Observability platform surpassed $300 million in annual recurring revenue (ARR) in Q3 of fiscal year 2026. Palo Alto Networks also said it was named a leader in the Gartner Magic Quadrant for Observability Platforms for the third consecutive year and received the top ranking for Observability Cost Control in the 2026 Gartner Critical Capabilities report.

Lee Klarich, Chief Product & Technology Officer of Palo Alto Networks, said the combined capabilities would be linked with Cortex AgentiX, allowing organizations to "both see and automatically fix issues across their ecosystem."

The acquisition of Embrace is subject to customary closing conditions and is expected to close in Palo Alto Networks' first quarter of fiscal year 2027. Financial terms were not disclosed.

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