Palo Alto Networks is rumoured to be making another acquisition in the AI agent identity space.

Per The Information, Palo Alto is reportedly looking to acquire Clutch Security for $500 million. The Israeli firm specializes in non-human identities (NHIs), touting an Identity Lineage technology that links an identity to its creator, AI agent, client application, or storage location.

According to reports, Clutch is currently valued at $85 million following a $20 million Series A round in January 2025, with almost $10 million in annual recurring revenue. While Palo Alto Networks is neither a known investor nor a customer, Clutch does offer integration with CyberArk, the $25 billion Palo Alto acquisition that now forms its Idira platform.

Clutch and CyberArk overlap in their NHI coverage. Palo Alto has also filled its boots this year with other agentic security purchases, including Koi Security and Portkey.

Headquartered in Tel Aviv, Clutch Security was formed in 2023 by Israeli security veterans Ofir Har-Chen, Sagi Haas, and Tal Kimhi. Investors include Lightspeed Venture Partners, Merlin Ventures and Cyber Club London, while NTT Data and OpenWeb count among its biggest customers.

Upon completion, the Clutch Security acquisition would mark Palo Alto’s seventh acquisition of the year to date. Its most recent acquisitions were AI-native IT service management (ITSM) platform Console, snapped up for a reported $500 million, and Embrace, which skewed from Palo Alto’s agentic strategy with an observability focus covering user taps, swipes, and clicks.