Palo Alto Networks is discussing a roughly $500 million cash acquisition of Clutch Security, a startup that protects AI agents’ access to enterprise systems, though no transaction has been announced.
The proposal could include additional payments linked to milestones. The discussions may end without an acquisition, and neither company has made a public statement about them.
Clutch is an Israeli startup focused on securing AI agents as they access enterprise systems. A completed purchase would bring the company into Palo Alto Networks’ cybersecurity business.
Clutch’s Series A financing in January 2025 put its valuation at about $85 million. Its annual recurring revenue, a measure of recurring revenue over a year, is near $10 million. The proposed acquisition price is nearly six times the earlier valuation, but the figures measure different things.
