Palo Alto Networks in talks to buy AI agent security startup Clutch for $500M

Palo Alto Networks is in talks to acquire Clutch Security, a startup that secures AI agents' access to company systems, for $500 million in cash plus milestone-based payouts, according to a source. Clutch, three years old, was last valued at $85 million in its January 2025 $20 million Series A led by Lightspeed and SignalFire and is approaching $10 million in ARR, implying a valuation of about 50 times ARR. If completed, it would be Palo Alto Networks' seventh acquisition this year, per PitchBook.