Palo Alto Networks to Acquire Observability Platform Provider Embrace
Palo Alto Networks is acquiring Embrace, a user-focused observability platform, to bolster its Observability platform with Real User Monitoring (RUM) and proactively validate application performance globally. This acquisition is part of a larger strategy to expand Palo Alto Networks’ observability capabilities and generate over $300 million in annual recurring revenue.
Palo Alto Networks announced its intention to acquire Embrace, a provider specializing in user-centric observability, to enhance its existing Observability platform. The acquisition focuses on integrating Real User Monitoring (RUM) technology into the platform, providing a more complete picture of application performance from the user’s perspective. This move is driven by Palo Alto Networks’ strategy to offer a unified view of digital experiences, encompassing user interactions and backend infrastructure validation.
Embrace’s RUM technology is designed for modern, cloud-native environments, while Palo Alto Networks’ Synthetics capability, developed internally, utilizes the company’s globally distributed infrastructure to proactively test application availability before issues impact users. The combined offerings will be integrated with Palo Alto Networks’ Cortex AgentiX, enabling automated issue detection and remediation.
This acquisition follows Palo Alto Networks’ January 2026 acquisition of Chronosphere, further solidifying the company’s commitment to expanding its observability offerings. The deal is subject to customary closing conditions and is anticipated to finalize in the first quarter of Palo Alto Networks’ fiscal 2027.