Palo Alto Networks 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 additional milestone-based payouts. clutch was last valued at $85 million when it raised a $20 million series a round in january 2025, led by lightspeed and signalfire. the startup is currently approaching $10 million in annual recurring revenue, which would value the acquisition at about 50 times its arr. palo alto networks has a history of buying innovation rather than building it in-house and has ramped up dealmaking this year in response to rising ai-driven cyberattacks. if the deal happens, it would be palo alto networks' seventh acquisition this year.