Palo Alto Networks intends to acquire Embrace to enhance its Observability platform with Real User Monitoring capabilities. The addition aims to provide a unified view of digital experiences, linking end-user interactions with backend performance metrics.
Palo Alto Networks announced its intent to acquire Embrace, enhancing its Observability platform with Real User Monitoring (RUM) capabilities. Financial terms were not disclosed, and the deal is subject to customary closing conditions.
The acquisition will allow Palo Alto Networks to extend its Observability platform into Digital Experience Monitoring. Embrace's RUM technology is designed for cloud-native environments, while Synthetics, developed by the ADEM team, will validate application performance globally.
Lee Klarich, Chief Product & Technology Officer, emphasized the importance of a comprehensive view of application performance. The integration of Embrace's technology with existing solutions is intended to help organizations detect and resolve issues proactively.
This announcement builds upon Palo Alto Networks' previous acquisition of Chronosphere, which occurred in January 2026 for $3.35 billion. The company reports an annual recurring revenue of over $300 million from its observability initiatives.
The acquisition of Embrace is expected to close in the first quarter of Palo Alto Networks’ fiscal 2027, advancing the company's strategy to enhance digital experience capabilities.
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Palo Alto Networks intends to acquire Embrace to enhance its Observability platform with Real User Monitoring capabilities. The addition aims to provide a unified view of digital experiences, linking end-user interactions with backend performance metrics.