Palo Alto Networks in Talks to Acquire Israeli Cyber Firm Clutch for $500 Million
Translated & summarized from Calcalist by baba
Palo Alto Networks is reportedly in talks to acquire Israeli cybersecurity startup Clutch Security for around $500 million. Clutch specializes in securing non-human digital identities and AI agents. The company, founded in late 2023, has raised $28.5 million to date. If finalized, the deal would be a significant exit for Clutch and its investors, though no official confirmation has been released.
The story in 6 lines · by baba
- Palo Alto Networks is negotiating to acquire Israeli cyber firm Clutch Security for approximately $500 million.
- Clutch Security develops technology for managing and securing digital identities used by AI agents.
- The company was founded in late 2023 by Ofir Har-Chen, Sagi Haas, and Tal Kamchi.
- Clutch has raised $28.5 million in funding from investors like Lightspeed Venture Partners and SignalFire.
- The potential acquisition represents a significant exit for Clutch and its investors.
- Discussions are ongoing, and no official deal has been announced.
American cybersecurity giant Palo Alto Networks is reportedly in negotiations to acquire Israeli cyber firm Clutch Security for approximately $500 million. The Information, citing sources familiar with the discussions, reported that Clutch Security, founded about three years ago, has developed technology for managing and securing digital identities not belonging to humans, specifically passwords and permissions used by AI agents.
Clutch was established in late 2023 by CEO Ofir Har-Chen, CTO Sagi Haas, and VP of Development Tal Kamchi. The company's platform focuses on securing non-human identities, such as API keys, service accounts, tokens, passwords, and permissions that enable software systems and applications to communicate. As the use of AI agents in organizations expands, so does the number of identities and permissions they operate with, making them a significant target for attackers.
The Clutch platform allows organizations to map all digital identities within their work environment, identify excessive or exposed permissions, manage their lifecycle, and detect suspicious activity. The company is also extending its security solutions to AI agents, managing the permissions and digital secrets they utilize.
Clutch has raised approximately $28.5 million in two funding rounds. In July 2024, it secured $8.5 million in a seed round led by Lightspeed Venture Partners, with participation from Merlin Ventures and private investors including Shlomo Kramer, Nir Polak (co-founder of Exabeam), and Armon Dadgar (co-founder of HashiCorp). In January 2025, the company completed a $20 million Series A round led by SignalFire, with existing investors Lightspeed and Merlin Ventures also participating. These funds were intended for expanding operations, product development, and bolstering research and development.
The company operates from Tel Aviv and the United States. If the acquisition is completed at the reported valuation, it would represent a significant exit for Clutch and its investors, with a particularly high multiple relative to the capital raised. However, the report emphasizes that these are currently only discussions, and no official announcement has been made by either company.