Palo Alto Networks discusses $500M acquisition of Clutch Security

Palo Alto Networks is negotiating to acquire Clutch Security, a three-year-old startup that controls AI agents’ access to corporate systems. The proposed consideration is $500 million in cash, plus further payments tied to milestones, according to a person familiar with the talks. Neither company responded to a request for comment.

Clutch was valued at $85 million when it raised a $20 million Series A in January 2025. Lightspeed and SignalFire led that round. The startup is now nearing $10 million in annual recurring revenue, which would put the potential purchase price at about 50 times ARR if the transaction closes.

PitchBook says the deal would be Palo Alto Networks’ seventh acquisition this year. The cybersecurity company has also bought Console, Embrace, Chronosphere and Koi, among others. In September, its acquisition of Console, whose AI agents automate routine IT help-desk work, was valued at $500 million in cash and stock. Clutch operates in a market drawing more attention as attackers use AI to make system breaches easier. Competitors Oasis Security and Astrix were recently acquired by Cyera and Cisco, respectively.