Thought Leadership
Palo Alto Networks has announced plans to acquire observability provider Embrace. The deal will expand the company’s platform with Real User Monitoring capabilities.
The US cybersecurity company Palo Alto Networks has announced its intention to acquire Embrace, a provider specializing in observability solutions and technologies for Real User Monitoring. The acquisition will add end user interaction monitoring to Palo Alto Networks’ existing observability platform.
At the same time, the company has introduced Synthetics, a module developed by its Autonomous Digital Experience Management team to proactively assess application performance worldwide. Lee Klarich, Chief Product & Technology Officer at Palo Alto Networks, described the company’s strategic direction as follows:
“To truly understand how their applications are performing, companies need to see the full picture, from the moment a user taps or clicks to exactly what is happening in the backend.”
Lee Klarich, Chief Product & Technology Officer, Palo Alto Networks
Integrating the systems with the Cortex AgentiX tool is expected to enable the automatic detection and remediation of performance issues.
Expanding the Platform Following Billion Dollar Chronosphere Acquisition
The planned Embrace acquisition follows Palo Alto Networks’ acquisition of Chronosphere, which the company completed in January 2026 for a purchase price of $3.35 billion. According to the company, annual recurring revenue in its observability business has now surpassed $300 million.
With these additions, Palo Alto Networks is bringing the monitoring of user interactions, application validation and backend infrastructure together within a single system.
Planned Timeline and Financial Terms
The companies involved have not disclosed the financial details or purchase price of the transaction. The acquisition remains subject to customary closing conditions. Palo Alto Networks expects the deal to close in the first quarter of fiscal year 2027.
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