Palo Alto Networks, the global cybersecurity leader, announced its intent to acquire Embrace, a leading provider of user-focused observability, to add high-fidelity Real User Monitoring (RUM) capabilities to the Palo Alto Networks Observability platform. Palo Alto Networks is also introducing Synthetics, a new capability built with its world-class Autonomous Digital Experience Management (ADEM) team, for proactively validating application performance from anywhere. These new capabilities will extend Palo Alto Networks Observability to Digital Experience Monitoring. Customers will gain a complete, unified view, from end-user interactions and proactive app validation to backend software and infrastructure, all on the industry's leading, innovative, cost-effective platform.
Modern applications are increasingly complex and autonomous, and organizations need full performance visibility to ensure reliability. Legacy tools are fragmented, cost-prohibitive, and frequently miss when a user's experience is broken. Embrace's proven RUM capabilities are built for modern environments, allowing customers to deliver applications that scale at the pace of AI. Synthetics will leverage Palo Alto Networks' globally distributed infrastructure to proactively validate application availability and performance from strategic locations across the globe. With these new capabilities, organizations will be able to:
Eliminate blindspots: Monitor user experiences and infrastructure health through a single interface to help ensure user-facing applications and workflows are seamlessly executing without introducing hidden digital issues.
Prevent revenue impacting downtime: Combine Embrace's advanced monitoring with Palo Alto Networks' deep data analytics, to quickly pinpoint and resolve complex performance issues, protecting revenue and brand reputation.
Catch problems before any user does: Palo Alto Networks' Observability platform and ADEM deliver a complete view of digital experience by catching issues before they impact both customers and employees.
Following the acquisition of Chronosphere in January 2026, Palo Alto Networks continues to drive innovation across its Observability platform, surpassing $300M ARR in Q3 FY26. The company also earned recognition from Gartner® Magic Quadrant™ for Observability Platforms, where it was named a leader for the third consecutive year, earning the top ranking for Observability Cost Control in the 2026 Gartner® Critical Capabilities™ report.
The acquisition is subject to customary closing conditions, and is expected to close in Palo Alto Networks first quarter of fiscal 2027.
Lee Klarich, Chief Product & Technology Officer of Palo Alto Networks
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. 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, organizations will be able to both see and automatically fix issues across their ecosystem. This is what true platformization looks like in practice.
