Palo Alto Networks in Talks to Acquire Israeli Startup Clutch Security for $500M

American cybersecurity giant Palo Alto Networks is in talks to acquire Israeli cybersecurity startup Clutch Security for approximately $500 million, according to a report by US technology magazine The Information citing sources familiar with the matter. Founded about three years ago, the Israeli firm has developed technology for managing and securing non-human digital identities, particularly credentials and permissions utilized by AI agents.

Clutch was established in late 2023 by Ofir Har-Chen, who serves as CEO; Sagi Hass, CTO; and Tal Kimhi, VP of R&D. The company develops a platform focused on non-human identity management, including API keys, service accounts, tokens, passwords, and permissions that enable software systems and applications to communicate. As organizations increasingly deploy autonomous AI agents, the volume of associated identities and permissions has surged, turning them into prime targets for threat actors.

The Clutch platform enables enterprises to map all digital identities within their workspace, detect excessive or exposed permissions, manage their lifecycle, and identify suspicious activity. The company operates from Tel Aviv and the United States. To date, Clutch has raised approximately $28.5 million across two public funding rounds, including an $8.5 million seed round in July 2024 led by Lightspeed Venture Partners, and a $20 million Series A round in January 2025 led by SignalFire.

If finalized at the reported valuation, the transaction would represent a major exit for the startup and its investors, yielding an exceptional multiple relative to the capital raised. However, discussions remain ongoing, and no official announcement has been issued by the companies.