Palo Alto Networks is in talks to buy Israeli cybersecurity company Clutch Security for $500 million, "The Information" reports.
Clutch Security, which was founded three years ago, has developed software that helps companies track passwords and authentication codes used by AI agents. This acquisition could expand Palo Alto Networks' operations in identity and access security, addressing risks associated with the growing use of autonomous agents. According to reports, if finalized, this would mark the fifth acquisition announced by Palo Alto Networks this year.
"The Information" reports that Clutch has raised over $20 million, with backing from investors including Lightspeed and SignalFire.
This potential acquisition would further strengthen Palo Alto Networks' presence in the identity security sector, following its acquisition of Israeli cybersecurity firm CyberArk earlier this year for about $25 billion. While CyberArk specializes in managing and protecting identities and access privileges for enterprise systems, Clutch focuses on non-human identities, specifically the security risks inherent in the use of AI agents. Integrating Clutch’s technology could enhance Palo Alto Networks' capabilities in this area.
Growing interest in AI agent security
The increasing focus on securing AI agents has already triggered a series of acquisitions within the cybersecurity industry. Last month, enterprise software company Workday acquired C1.ai, which specializes in managing the identities of AI agents alongside those of human employees. In August, identity security firm Okta acquired Permiso Security, and in June, its competitor SailPoint acquired Entro Security. Both deals were aimed at strengthening the companies' capabilities in managing and securing the identities used by AI agents.
Demand for such solutions is rising as the use of AI agents within organizations expands, driven by concerns that access privileges could be exploited to breach systems or expose sensitive information. Unlike chatbots, which are primarily used to answer questions, autonomous agents are capable of performing actions within enterprise systems. Consequently, mechanisms are required to identify these agents, monitor their activity, and restrict their access to information. Palo Alto Networks told "The Information" that the company does not comment on rumors or speculation, while Clutch Security declined to comment.
Published by Globes, Israel business news - en.globes.co.il - on November 5, 2026.
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