Palo Alto Networks Eyes $500 Million Clutch Deal as AI Security Valuations Climb
Updated
Updated · TechCrunch · Nov 6
Palo Alto Networks Eyes $500 Million Clutch Deal as AI Security Valuations Climb
3 articles · Updated · TechCrunch · Nov 6
Summary
$500 million in cash plus milestone payouts would buy Clutch Security, a three-year-old startup that controls AI agents’ access to company systems, according to a person familiar with the talks.
Clutch was last valued at $85 million in a January 2025 Series A and is nearing $10 million in ARR, implying a roughly 50-times revenue multiple if the acquisition closes.
Palo Alto has accelerated acquisitions as AI-driven cyberattacks rise; a Clutch purchase would be its seventh deal this year after buys including Console at $500 million and Chronosphere at $2.95 billion.
The pricing fits a hot AI security market: Upwind reportedly rejected a roughly 40-times-ARR offer from Datadog, while Cyera bought Oasis Security for $1 billion and Cisco acquired Astrix for about $400 million.