Dynatrace to Acquire AI Observability Leader Arize

Bangalore, September 2026 : Acquisition will provide the industry’s mostcomprehensive AI development lifecycle solution

Dynatrace (NYSE: DT), the leading AI-powered ob?ervability platform, ha? ?igned a de?nitive agreement to acquire Arize in a ca?h and ?tocktran?action valued at

$915 million. Together, Dynatrace and Arize will enable cu?tomer? to evaluate, operate, and continuou?ly improve AI application? from development throughproduction at ?cale.

AI Ob?ervability ?pan? the full lifecycle of an AI application, from experimentation and evaluation before relea?e, to tracing how LLM?, agent?, and orche?tration layer? behave in production. It connect? that behavior with application performance, GPU utilization, infra?tructure health, and bu?ine?? proce??e?. AI Ob?ervability deliver? the in?ight? AI engineer?, developer?, SRE?, and platform team? need to debug and optimize AI behavior and keep AI-powered ?ervice? accurate, reliable, and co?t-e?cient. It i? al?o one of the fa?te?t-growing categorie? in ob?ervability, projected to exceed $10 billion by 2030 and i? central to Dynatrace’? growth ?trategy.

“AI i? now movinginto production at incredible ?peed,and the re?ulting AI Ob?ervability market opportunity i? enormou?. Dynatrace anticipate? cu?tomer?’ need? at critical in?ection point?, and thi? i? one of the mo?t ?igni?cant in our hi?tory,” ?aid Rick McConnell, CEO, Dynatrace. “Acquiring Arize advance? our AI ob?ervability leader?hip, accelerate? our roadmap, enhance? our long-term growth pro?le, expand? our reach with the developer community, and add? an incredible AI-?r?t team to Dynatrace.”

Today, AI ?oftware delivery i? fragmented. AI engineering team? evaluate model and agent behavior in one ?et of tool?, whilethe team? runningthe application? and infra?tructure beneath them work in another. There i? often no ?hared ?y?tem connecting how an AI application i? evaluated to how it behave? in production, ?o when output quality ?lip? or a cu?tomer tran?action fail?, the cau?e can ?it anywhere from the prompt to the infra?tructure, and there i? little feedback to developer?. Dynatrace’? acqui?ition of Arize will eliminate that fragmentation and provide end-to-end ob?ervability from development to production.

Arize i? the category leader in AI Ob?ervability, purpo?e-built for AI and agent? and tru?ted by Fortune 500 enterpri?e? and AI-native builder? alike. Arize combine? a ?trong developer brand and thriving open ?ource community with the enterpri?e-grade framework? that team? need to

detect hallucination?, mea?ure output quality, and continuou?ly validate AI behavior. It i? the only platform that i? ?imultaneou?ly OSS-native and ?tack-agno?tic acro?? every major AI framework and model provider. Thi? make? Arize a clear choice for developer? acro?? the AI lifecycle.

“We foundedArize becau?e AI team? neededa way to know their agent? were actually working correctly, not ju?t running,” ?aid Jason Lopatecki, CEO, Arize. “Joining Dynatrace will enable u? to take that mi??ion much further. Together, we can bring AI evaluation and ?oftware ob?ervabilityinto an end-to-end ?y?tem, enablingteam? to build more ambitiou? AI application? fa?ter. Thi? i? the kind of innovation that only happen? when two companie? with highly complementary ?olution? and go-to-market model? come together,?etting a new bar for what AI Ob?ervability can deliver for the entire indu?try.”

Following the clo?ing of the propo?ed acqui?ition, Dynatrace cu?tomer? will gain:

• Continuou? coverage acro?? the AI lifecycle, from experimentation and deployment readine?? through runtimeevaluation and ob?ervability, with automated feedbackloop? that ?upport ongoing improvement.
• Uni?ed context for under?tanding AI behavior and bu?ine?? impact, connecting model and agent evaluation with application performance, infra?tructure health, and bu?ine?? outcome?.
• An enterpri?e data foundation for AI workload?, powered by exabyte-?cale analy?i? and AI lakehou?e capabilitie?.

For developer?, the combination will deliver a direct path from experimentation to enterpri?e-grade deployment, backed by Arize’? tru?ted ?tanding in the open-?ource AI community. A? AI tooling deci?ion? increa?ingly ?tart with developer?, that tru?t open? a direct path to the ob?ervability and reliability capabilitie? that Dynatrace alreadybring? to enterpri?e cu?tomer?.

Transaction Details

The tran?action i? expected to clo?e later thi? quarter or early in Dynatrace’? third quarter, ?ubject to regulatory review? and other cu?tomary clo?ing condition?. Under the term? of the agreement, Dynatrace will acquire Arize for $915 million, ?ubject to cu?tomary adju?tment?, con?i?ting of approximately $815 million in ca?h a? well a? replacement equityaward? for Arize

employee? joining Dynatrace. Dynatrace plan? to fund the tran?action through ca?h on hand and/or it? exi?ting credit facility.

Arize’? two founder?, Ja?on Lopatecki and Aparna Dhinakaran, will both join Dynatrace at clo?ing. Ja?on will continue to lead the Arize team and will report directlyto Rick McConnell.

Expected Financial Impact

Dynatrace expect? the tran?action to be approximately 200 ba?i? point? accretive to ARR growth and 175 ba?i? point? dilutive to Non-GAAP Operating Margin for ??cal 2027. We expect togenerate incremental operating margin expan?ion from ??cal 2027 level? into ??cal 2028 and beyond. The tran?action i? not expected to materially impact the company’? ?econd quarter ??cal 2027 guidance or it? ongoing ?hare repurcha?e program.

Advisors

J.P. MorganSecuritie? LLC i? acting a? ?nancial advi?orto Dynatrace, and Goodwin ProcterLLP i? acting a? it? legalcoun?el. Qataly?t Partner? i? acting a? exclu?ive ?nancial advi?or to Arize and DLA Piper LLP i? acting a? it? legal coun?el.

Investor Conference Call Details

Dynatrace will hold a conference call for inve?tor? and analy?t? at 8:30 a.m. Ea?tern Time on Augu?t 13, 2026 to di?cu?? the ?trategic rationale of the propo?ed acqui?ition. To acce?? the conference call from the U.S. and Canada,dial (866) 405-1247,or internationally, dial (201) 689-8045 with conference ID 13762249. The call will al?o be available live via webca?t on the company’? web?ite, ir.dynatrace.com.

An audioreplay of the call will be available until 11:59 p.m. Ea?tern Time on Augu?t27, 2026 by dialing (877) 660-6853 from the U.S. or Canada,or for international caller? by dialing (201) 612-7415 and entering conference ID 13762249. In addition,an archived webca?t will be available at ir.dynatrace.com.

About Dynatrace

Dynatrace i? advancing ob?ervability for today’? digital bu?ine??e?, helping to tran?form the complexity of moderndigital eco?y?tem? into powerful bu?ine??a??et?. By leveraging AI-

powered in?ight?,Dynatrace enable? organization? to analyze, automate,and innovate fa?terto drive their bu?ine?? forward. To learn more about how Dynatrace can help your bu?ine??, vi?it www.dynatrace.com, vi?it our blog and follow u? on LinkedInand X @ dynatrace.

About Arize

Arize i? a uni?ed AI ob?ervability and LLM evaluation platform that help? team? develop and maintain more ?ucce??ful AI. Arize’? automated monitoring and ob?ervability platform allow? team? to quickly detect i??ue? when they emerge, trouble?hoot why they happened, and improve overall performance acro?? both traditional ML and generative u?e ca?e?. Arize i? headquartered in San Franci?co, CA.

Cautionary Language Concerning Forward-Looking Statements

This press release includes certain “forard-looking statements” ithin the meaning of the Private Securities Litigation ReformAct of 1995, including statements regarding the expectedbene?ts of the proposed acquisition, capabilities expected to be available to organizations from using Dynatrace and Arize folloingthe closing of the proposedacquisition, expected futuregroth in the AI Observability market segment and its expected size in 2030, the expected timing for closing of the proposedacquisition, Dynatrace’s plans to fund the proposed acquisition, and the expected ?nancial impact of the proposed acquisition. These forard-looking statements include all statements that are not historical facts and statements identi?ed by ords such as “ill,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and ords of similar meaning.These forard-looking statements re?ect our current vies about our plans, intentions, expectations, strategies, and prospects, hich are based on the information currently available to us and on assumptions e have made. Although e believe that our plans, intentions, expectations, strategies, and prospects as re?ected in or suggested by those forard-looking statements are reasonable, ecan give no assurance that the plans, intentions, expectations, or strategies ill be attained or achieved. Actual results may differ materially from those described in the forard-looking statements and ill be affected by a variety of risks and factors that are beyond our control, including our ability to successfully complete the Arize acquisition and integrate the nely acquired business and offerings, the risks set forth under the caption “Risk Factors” in our most recent Annual Report on Form 10-K, subsequent QuarterlyReports on Form 10-Q, and our other SEC ?lings.We assume no obligation to update any forard-looking

statements contained in this document because of ne information, future events, or otherise.

Non-GAAP Financial Measures

In addition to disclosing ?nancial measures prepared in accordance ith GAAP, this press release contains a non-GAAP?nancial measure as de?ned by Regulation G, non-GAAP operating margin. We use this non-GAAP?nancial measure for ?nancial and operational decision-making purposes, and as a means to evaluateperiod-to-period comparisons and liquidity. We believe that this non-GAAP ?nancialmeasure provides useful information about our operatingresults, enhances the overall understanding of past ?nancial performance and allosfor greater transparency ith respect to metricsused by our management in its ?nancial and operational decision-making. The presentation of the non-GAAP?nancial measure is not intended to be considered in isolation or as a substitutefor, or superior to, the ?nancial information prepared and presented in accordance ith GAAP. Our non-GAAP?nancial measure may not provide information that is directly comparable to similarly titled metrics provided by other companies. Non-GAAP ?nancial measures and Annual Recurring Revenueare de?ned in our press release dated August 5, 2026. A reconciliation of non-GAAP operating margin guidance to the most directly comparable GAAP measure is not available ithout unreasonable efforts on a forard-looking basis due to the high variability,complexity and lo visibility ith respect to the charges excluded from this non-GAAP measure; in particular, the measures and effects of share-based compensation expense, employer taxes and tax deductions speci?c to equity compensation aards that are directly impacted by future hiring, turnover and retention needs, as ell as unpredictable ?uctuations in our stock price. We expect the variability of the above charges to have a signi?cant, and potentially unpredictable, impact on our future

GAAP ?nancial results.