Dynatrace (NYSE: DT) has announced a definitive agreement to acquire Arize in a transaction valued at $915 million, combining cash and stock components.
The acquisition will enhance Dynatrace's capabilities in AI application evaluation, operation, and continuous improvement from development to production at scale.
The deal is anticipated to close later this quarter or early in Dynatrace's third quarter, pending regulatory reviews and customary closing conditions.
The purchase price includes approximately $815 million in cash, with the remainder in replacement equity awards for Arize employees joining Dynatrace.
Dynatrace plans to finance the acquisition using cash on hand or its existing credit facility.
J.P. Morgan Securities LLC is serving as the financial advisor, while Goodwin Procter LLP is providing legal counsel for Dynatrace.
“AI is now moving into production at incredible speed, and the resulting AI Observability market opportunity is enormous. Dynatrace anticipates customers' needs at critical inflection points, and this is one of the most significant in our history,” said Rick McConnell, CEO, Dynatrace.