WASHINGTON (dpa-AFX) - Palo Alto Networks (PANW) on Wednesday announced that it has agreed to acquire Chronosphere, a next-generation observability platform designed to scale for the AI era, for $3.35 billion.
Palo Alto Networks expects the acquisition to strengthen its 'ability to help organizations navigate a world where modern applications and AI workloads demand a unified data and security foundation.'
Nikesh Arora, Chairman and CEO, Palo Alto Networks: 'The foundational requirement for every modern AI data center is constant uptime and resilience, which demands real-time, always-on observability delivered at the right cost. Chronosphere was built to scale for the data demands of the AI era from day one, which is why it is chosen by leading AI-native and born-in-the-cloud organizations. And once we leverage AgentiX with Chronosphere, we will take observability from simple dashboards to real-time, agentic remediation. We are excited to not just enter this space, but to disrupt it.'
Under the terms of the agreement, Palo Alto Networks will acquire Chronosphere for a total consideration of $3.35 billion, to be paid in cash and replacement equity awards, subject to adjustments.
Chronosphere reports generating annual recurring revenue ('ARR') of over $160 million as of the end of September 2025, growing ARR triple-digits year-over-year.
The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in Palo Alto Networks' second half of fiscal 2026.
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