Palo Alto Networks in talks to buy Clutch for $500 million

Clutch was valued at $85 million in January 2025, when it raised a $20 million Series A led by Lightspeed and SignalFire, the person said. The startup is approaching $10 million in annual recurring revenue, which would put the proposed cash price at about 50 times ARR, a common software valuation measure.

Neither company responded to requests for comment. The Information first reported the discussions. If completed, the purchase would be Palo Alto Networks’ seventh acquisition this year, according to PitchBook. The cybersecurity company has stepped up dealmaking amid rising AI-driven cyberattacks, and has a history of acquiring technology rather than building it in-house.

In September, Palo Alto Networks bought Console, an AI-agent startup that automates routine IT help desk tasks, in a deal valued at $500 million in stock and cash, TechCrunch reported. Other acquisitions this year include NEA-backed Embrace for $325 million, observability company Chronosphere for $2.95 billion, and cyber startup Koi for $231 million, according to regulatory filings.

Clutch’s competitors have also attracted large deals. Cyera, valued at $12 billion earlier this year, acquired Oasis Security, which also manages AI agents’ access to systems, for $1 billion. Cisco bought Menlo Ventures-backed Astrix for roughly $400 million, Calcalist reported. In a separate sign of elevated valuations, AI cloud-security startup Upwind recently rejected a DataDog offer reportedly worth about 40 times its ARR, TechCrunch reported last week.