MakoTech08:45

Palo Alto Networks in Talks to Acquire Israeli AI Security Startup for $500 Million

By ליאור באקאלו

Translated & summarized from Mako by baba

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Hebrew · 5 newsrooms covering

Palo Alto Networks is reportedly in talks to acquire Israeli AI security startup Clutch Security for around $500 million. Clutch, founded in 2023, specializes in securing credentials for AI agents and has raised approximately $29 million to date. The potential acquisition highlights Palo Alto Networks' strategy to expand its identity security offerings, particularly in the rapidly growing field of AI.

The story in 5 lines · by baba

Palo Alto Networks is reportedly negotiating to acquire Israeli startup Clutch Security for approximately $500 million.
Clutch Security develops software to secure credentials and access for AI agents within organizations.
The potential deal significantly exceeds the $29 million Clutch has raised since its 2023 founding.
The acquisition aligns with Palo Alto Networks' strategy to secure all types of digital identities, including AI agents.
Palo Alto Networks has made other recent acquisitions in the identity and AI security space.

American cybersecurity giant Palo Alto Networks is reportedly in discussions to acquire Israeli startup Clutch Security for approximately $500 million. The Information reported the potential deal, citing sources familiar with the matter. Clutch Security develops software designed to secure the credentials and access keys for AI agents operating within organizations. These AI agents function similarly to employees, requiring access to company systems, and Clutch's technology maps these credentials, identifies risky permissions, and detects suspicious activity.

If the acquisition proceeds, it would represent a significant valuation increase for Clutch, which has raised only about $29 million since its founding in 2023. The startup has attracted investment from firms like Lightspeed Venture Partners and SignalFire. Clutch Security, which also operates in the U.S. and employs around 45 people, was founded by Ophir Har-Chen, formerly COO of cyber firm Hunters, along with co-founders the Co-founder and Tal Kamchi, who previously worked at Axonius.

Palo Alto Networks' interest in Clutch aligns with its stated strategy to secure all types of identities, including those of AI agents. Earlier this year, Palo Alto Networks acquired Israeli identity security firm CyberArk for $25 billion and Israeli startup Kooler Security, which secures AI tools on employee devices, for about $400 million. Clutch Security's focus on securing AI agent identities is seen as a complementary area to these previous acquisitions.

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