Palo Alto Networks to Acquire Observability Platform Provider Embrace

Palo Alto Networks on Tuesday announced its intent to acquire Embrace, a provider of user-focused observability. The company said the acquisition will add Real User Monitoring capabilities to its Observability platform. Financial terms of the deal were not disclosed. Alongside the acquisition, Palo Alto Networks introduced Synthetics, a new capability developed in-house by its Autonomous Digital Experience Management team for proactively validating application performance from locations around the globe. Together, the additions extend the Observability platform into Digital Experience Monitoring, giving customers a unified view spanning end-user interactions, application validation, and backend infrastructure. According to the company, Embrace's RUM technology is built for modern, cloud-native environments, while Synthetics leverages Palo Alto Networks' globally distributed infrastructure to validate application availability before problems reach users. Lee Klarich, Chief Product & Technology Officer at Palo Alto Networks, said that to truly understand how their applications are performing, organizations need to see the whole picture, from the moment a user taps or clicks to what exactly happens on the backend. He added that linking the capabilities with the company's Cortex AgentiX would allow organizations to both detect and automatically remediate issues. The deal builds on Palo Alto Networks' January 2026 $3.35 billion acquisition of Chronosphere, part of a broader observability push that the company says has surpassed $300 million in annual recurring revenue. The acquisition is subject to customary closing conditions and is expected to close in the first quarter of Palo Alto Networks' fiscal 2027.