Palo Alto Networks in Talks to Buy Clutch for About $500 Million

Palo Alto Networks is in talks to acquire Clutch Security for about $500 million, a potential deal that would bring an Israeli AI agent security startup into the cybersecurity company’s business.

The proposed consideration is about $500 million in cash and may include additional payments tied to milestones. The companies have not announced a transaction, and the discussions may not result in a completed acquisition. Neither company has commented publicly on the talks.

Clutch Security focuses on protecting AI agents as they access enterprise systems. The startup was valued at about $85 million in its Series A financing in January 2025. Its annual recurring revenue is close to $10 million, a measure of recurring revenue over a year.

The proposed purchase price is nearly six times Clutch’s Series A valuation, though the figures measure different things: a potential acquisition price and a prior financing valuation. The earlier valuation offers a point of comparison for the talks, while the revenue figure reflects the startup’s current business scale.