Palo Alto Networks in talks to buy Clutch Security for $500 million — TechCrunch

Palo Alto Networks is in talks to acquire Clutch Security, a startup that secures AI agents’ access to corporate systems. The potential deal involves $500 million in cash and additional payments tied to the achievement of certain targets, TechCrunch reports, citing a source familiar with the negotiations.

Representatives of Palo Alto Networks and Clutch Security did not respond to requests for comment. The Information was the first to report on the talks regarding a possible acquisition.

Clutch Security valuation

Clutch Security has been operating for three years. In January 2025, the company raised $20 million in a Series A round led by Lightspeed and SignalFire. At the time, the startup was valued at $85 million.

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According to TechCrunch’s source, Clutch is approaching $10 million in annual recurring revenue. If the deal is completed, its value would amount to approximately 50 times the startup’s annual recurring revenue. The publication notes that such high multiples are not unusual in a market where demand is growing for software protection against malicious actors using AI.

Other Palo Alto Networks acquisitions

According to PitchBook, the acquisition of Clutch could become Palo Alto Networks’ seventh deal this year. In September, the company acquired the startup Console, which uses AI agents to automate routine IT support tasks. TechCrunch estimated that transaction at $500 million in stock and cash.

Other Palo Alto Networks acquisitions this year include Embrace for $325 million, the observability platform Chronosphere for $2.95 billion, and cybersecurity startup Koi for $231 million. Clutch’s competitors have also been acquired by other companies: Cyera bought Oasis Security for $1 billion, while Cisco, according to Calcalist, acquired Astrix for about $400 million.