Palo Alto Networks to acquire Clutch Security

Palo Alto Networks is reportedly in discussions to buy AI agent security startup Clutch Security for $500 million in cash plus milestones. The potential deal highlights a broader industry push to secure software against rising AI-driven cyber threats.

Palo Alto Networks is negotiating the purchase of Clutch Security, a startup specializing in securing AI agents' access to corporate systems, for $500 million plus additional milestone payouts. Clutch approaches $10 million in annual recurring revenue and was previously valued at $85 million in January 2025. This potential transaction would mark Palo Alto Networks' seventh acquisition of the year, following a trend of buying security innovations to counter increasing AI-driven cyberattacks. Other recent acquisitions by the cybersecurity giant include Console, Embrace, Chronosphere, and Koi.

Palo Alto Networks in Talks to Acquire Clutch Security for $500M