Palo Alto Networks in talks to acquire AI security company Clutch, offering $500 million

on November 6, according to TechCrunch, sources said Palo Alto Networks is negotiating to acquire AI agent security startup Clutch Security, with an offer including $500 million in cash and additional milestone payments.

Clutch provides security for AI agents accessing enterprise systems. According to sources, the company was valued at $85 million in a $20 million Series A round led by Lightspeed and SignalFire in January 2025, with its annual recurring revenue currently nearing $10 million. Neither party has responded to requests for comment.