Palo Alto Networks to acquire Embrace to expand observability platform

• The deal adds Real User Monitoring capabilities to its Observability platform.
• Palo Alto Networks also introduced Synthetics for proactive application performance validation.
• The new capabilities expand the platform into Digital Experience Monitoring.

AI cybersecurity company Palo Alto Networks has revealed its plans to acquire user-focused observability provider Embrace. 

The acquisition will expand Embrace's Real User Monitoring (RUM) technology to the platform while introducing Synthetics, a new capability developed by Palo Alto Networks' Autonomous Digital Experience Management (ADEM) team. 

The company said the combined technologies will provide customers with a unified view of end-user interactions, application performance, and backend infrastructure.

Palo Alto Networks said the additions are designed to help organisations monitor user experiences through a single interface, identify complex performance issues more quickly, and proactively detect potential application problems.

Platform expansion

The announcement follows the company's acquisition of Chronosphere in January 2026 as it continues to expand its Observability platform. 

Palo Alto Networks said its Observability platform surpassed $300 million in annual recurring revenue during the third quarter of fiscal 2026.

“To truly understand how their applications are performing, organisations need to see the whole picture - from the moment a user taps or clicks to what exactly happens on the backend,” said Palo Alto chief product and technology officer Lee Klarich.

“By combining Palo Alto Networks' leading Observability platform with Embrace's innovative Real User Monitoring and the organically developed Synthetic Monitoring capabilities, we'll deliver exactly that. 

“And we're taking it a step further - by linking these capabilities with Cortex AgentiX, organisations will be able to both see and automatically fix issues across their ecosystem. This is what true platformisation looks like in practice."

The transaction remains subject to customary closing conditions and is expected to close in the company's first quarter of fiscal 2027.