Palo Alto Networks in talks to buy Israeli startup Clutch Security for $500 million
Palo Alto Networks, the cybersecurity software company, is discussing a $500 million deal for Israeli startup Clutch Security.
The short version
- Talks are in early stages and not finalized.
- If you own software index funds like IGV or CIBR, Palo Alto Networks is a major holding in both.
Palo Alto Networks, the cybersecurity software company, is in talks to acquire Israeli cybersecurity startup Clutch Security for about $500 million, according to Benzinga. The deal would mark Palo Alto Networks' fifth acquisition announced in 2026 if finalized, according to The Information.
Founded in 2023, Clutch Security focuses on protecting non-human identities, including service accounts, API keys, and credentials used by autonomous AI agents. The potential purchase would expand Palo Alto Networks' identity Security business following its acquisition of CyberArk earlier this year. Clutch Security has raised more than $20 million from investors, including Lightspeed Venture Partners and SignalFire.
Palo Alto Networks is scheduled to report earnings Nov. 18, with analysts expecting revenue to reach $3.31 billion. The stock accounts for 9.02% of the iShares Expanded Tech-Software Sector ETF, 7.56% of the First Trust Nasdaq Cybersecurity ETF, and 5.42% of the Amplify Cybersecurity ETF. Palo Alto Networks shares were down 1.26% at $343.66 during premarket trading on Thursday.
