Palo Alto Networks (NASDAQ: PANW) announced on Wednesday that it has agreed to acquire observability platform provider Chronosphere in a deal valued at $3.35 billion.
Chronosphere explains that its platform enables teams to “zero in on the data that’s most useful” and provides insights into every layer of their stack — from the infrastructure to the applications to the business.
Palo Alto said the combined solution of Chronosphere’s observability platform with Palo Alto’s AgentiX will deploy AI agents on massive amounts of data monitored by Chronosphere’s platform to detect performance issues, autonomously investigate the root cause, and close the loop with agentic remediation.
“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,” said Nikesh Arora, Chairman and CEO at Palo Alto Networks.
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 reported annual recurring revenue (“ARR”) of more than $160 million as of the end of September 2025.
The move to acquire Chronosphere is the latest of several acquisitions in recent years under Arora and follows a massive $25 billion deal to acquire CyberArk which was announced in July 2025. In April the cybersecurity giant said it was acquiring AI security company Protect AI in a deal reportedly valued at roughly $650-700 million.
