Palo Alto Networks is reportedly in talks to acquire Clutch Security for approximately $500 million in cash. The deal could also include additional payments tied to milestones.
Clutch Security is a three-year-old startup that manages and secures AI agents’ access to corporate systems. It is reportedly approaching $10 million in annual recurring revenue.
The acquisition would be Palo Alto Networks’ seventh this year, as it expands its security offerings against emerging AI-driven cyber threats. The proposed price would value Clutch Security at roughly 50 times its annual recurring revenue, reflecting the strategic importance of AI security.