Palo Alto Networks is in talks to acquire Clutch Security for $500 million in cash plus additional milestone-based payouts, according to a person familiar with the discussions reported by TechCrunch.
Clutch Security provides security for AI agents’ access to company systems. The three-year-old startup was last valued at $85 million when it raised a $20 million Series A round in January 2025, led by Lightspeed and SignalFire. The startup is currently approaching $10 million in annual recurring revenue, according to the source.
The proposed acquisition would value Clutch at approximately 50 times its annual recurring revenue. Neither Palo Alto Networks nor Clutch Security responded to requests for comment.
If completed, this would be Palo Alto Networks’ seventh acquisition this year, according to PitchBook. In September, the cybersecurity company acquired Console, a startup using AI agents to automate IT help desk tasks, for $500 million in stock and cash. Other 2026 acquisitions include Chronosphere for $2.95 billion, Embrace for $325 million, and Koi for $231 million, according to regulatory filings.
Several of Clutch’s competitors have also been acquired. Cyera bought Oasis Security, which also focuses on managing AI agents’ access to systems, for $1 billion. Cisco acquired Astrix for roughly $400 million, according to Calcalist.