- Dynatrace to integrate Arize’s AI observability and evaluation capabilities over time
- Arize co-founders Jason Lopatecki & Aparna Dhinakaran will join Dynatrace
- Arize will continue supporting its Phoenix and AX offerings
Dynatrace has closed its acquisition of Arize, adding artificial intelligence model and agent evaluation capabilities to Dynatrace’s observability offerings.
The transaction is intended to give developers visibility into AI applications from development through production, Dynatrace said Thursday.
What Are the Terms of the Dynatrace-Arize Deal?
Dynatrace agreed in August to acquire Arize in a cash-and-stock transaction valued at $915 million. The deal includes roughly $815 million in cash and replacement equity awards for Arize employees transferring to Dynatrace. The company said at the time that it would fund the purchase with cash on hand, its existing credit facility or both.
As part of the deal, Arize co-founders Jason Lopatecki and Aparna Dhinakaran will join Dynatrace, with Lopatecki leading the Arize team. He will report directly to Dynatrace CEO Rick McConnell.
McConnell said in August that the rapid adoption of AI in production was creating a significant market opportunity for AI observability. He said the Arize acquisition would advance Dynatrace’s road map and expand its reach among developers.
What Does Arize Bring to Dynatrace?
Arize provides technology for assessing AI models, agents and agentic workflows. Its offerings help teams evaluate model outputs, monitor agent activity and identify issues with AI applications.
Dynatrace said the combined capabilities will link AI evaluation with application performance, infrastructure health and business processes. The deal also extends Dynatrace’s existing monitoring of performance, cost and reliability to AI evaluation.
What Happens to Arize’s Products?
Arize will continue supporting Phoenix, its open-source AI observability and evaluation offering, and AX, its enterprise offering. Dynatrace said Arize capabilities will be integrated into its offerings over time.
The acquisition follows a Dynatrace study of 919 agentic AI leaders, in which 51 percent identified technical challenges in managing and monitoring agents at scale as a top barrier to putting such systems into production.
