Palo Alto Networks in talks to acquire Clutch for $500 million
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Palo Alto Networks is in talks to acquire AI agent security company Clutch Security for $500 million in cash plus milestone payments, and the deal is not yet finalized. According to a person familiar with the matter who spoke to TechCrunch, the two sides are still in discussions. Clutch was founded three years ago and focuses on protecting AI agents' access to enterprise systems. Its annual recurring revenue is close to $10 million; when it completed a $20 million Series A funding round in January 2025, it was valued at $85 million. If the deal closes at $500 million, the valuation would be about 50 times its ARR.
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- TechCrunch · AIPalo 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.
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