Datadog, a monitoring and security platform for cloud applications, has acquired Eppo, a company specialising in feature flagging and experimentation.

The deal is expected to bolster Datadog’s AI capabilities and enhance its product analytics suite.

Financial terms of the deal were not disclosed.

With the integration of Eppo into its suite, Datadog offers a comprehensive end-to-end product analytics solution on a single platform.

This integration will enable engineers to employ feature flags to track code modifications, while data science leaders and product managers can collaborate on designing experiments to measure impact.

Additionally, business analysts will be able to leverage Datadog’s Product Analytics suite to gain insights into product usage and business outcomes.

The growth of AI workloads has made Eppo’s experimentation capabilities increasingly valuable, allowing developers to safely scale complex systems, Datadog said.

These features are designed to measure real-time impacts on user experience and facilitate the accelerated deployment of updates, fostering a more agile and reliable development process.

Datadog product vice-president Michael Whetten said: “The use of multiple AI models increases the complexity of deploying applications in production. This complexity makes it difficult for developers to quantify the business impact of different models, agent behaviours, prompts or UI changes.

“Experimentation solves this correlation and measurement problem, enabling teams to compare multiple models side-by-side, determine user engagement against cost tradeoffs and ultimately build AI products that deliver measurable value.”

Eppo will maintain its commitment to current customers and continue to attract new ones under the banner of Eppo by Datadog.

Eppo founder and CEO Chetan Sharma said: “Eppo wants to bring a high velocity, experiment-first culture to companies of every size, stage and industry.

“With Datadog, we are uniting product analytics, feature management, AI and experimentation capabilities for businesses to reduce risk, learn quickly and ship high-quality products.”

In April 2025, Datadog acquired Metaplane, an end-to-end data observability platform.

Datadog’s SaaS platform integrates a variety of functions, including infrastructure monitoring, application performance monitoring, log management, and cloud security, providing real-time observability and security for a customer’s entire technology stack.

The company’s services are utilised by organisations across numerous industries, supporting digital transformation, cloud migration, cross-team collaboration, accelerated application delivery, among others.