Palo Alto Networks acquires Chronosphere for $3.35 billion

2025-11-19 · Publisher : Palo Alto Networks · Domain : Cloud & DevOps

Palo Alto Networks announces the acquisition of observability platform Chronosphere for $3.35 billion. The deal closes on 29 January 2026.

### Background On 19 November 2025, **Palo Alto Networks** announced a definitive agreement to buy **Chronosphere**, an observability platform founded in 2019, for **$3.35 billion** in cash and replacement awards. Chronosphere reports annual recurring revenue of more than **$160 million** at the end of September 2025, growing at triple digits. The deal closed on 29 January 2026, after regulatory approvals. ### Key facts - Palo Alto Networks thereby enters the observability market; Chronosphere is cited as a "Leader" in the 2025 Gartner Magic Quadrant for observability platforms. - Planned integration with Palo Alto's AgentiX platform for autonomous remediation: moving from passive monitoring to AI-driven investigation, at petabyte scale. - Quote from Nikesh Arora: "Chronosphere was built to scale for the data demands of the AI era from day one." - Chronosphere employs more than 250 people, including co-founders Martin Mao and Rob Skillington. ### Why it matters After Cisco and Splunk in 2024, a second security vendor buys an observability player: telemetry and security are converging, driven by AI. For IT leaders, two possible effects: a unified offering that reduces the number of tools to manage, but also greater dependence on a large security vendor for operational data. Whether Chronosphere's openness commitments are carried over remains to be checked. ### Takeaway Palo Alto Networks buys its way into observability and confirms the convergence with security.

Tags : Observabilité, Acquisition, Sécurité, États-Unis