Palo Alto Networks in Talks to Acquire AI Security Firm Clutch for $500 Million

TechFlow reported on November 6 that, according to TechCrunch, people familiar with the matter said Palo Alto Networks is in talks to acquire AI agent security startup Clutch Security, with deal terms including $500 million in cash and additional milestone payments.

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

Source: TechFlow