Datavault AI Inc. has signed a binding letter of intent to acquire CyberCatch Holdings, Inc., marking a significant move to strengthen its AI-powered cybersecurity capabilities and accelerate the development of quantum-resistant cyber risk mitigation solutions. The companies confirmed that they will move forward with a definitive agreement for a full acquisition structured as an all-stock transaction.

Under the proposed deal, Datavault AI will acquire 100% of CyberCatch’s outstanding shares, totaling approximately 26.8 million. In exchange, the company will issue around 49.9 million new shares of its common stock, valuing CyberCatch at approximately CAD $136.8 million. Following the completion of the transaction, Datavault AI shareholders are expected to hold about 92.48% of the combined entity, while CyberCatch shareholders will own roughly 7.52%.

Additionally, CyberCatch will continue operating as a subsidiary based in San Diego, California. Its founder and CEO, Sai Huda, will assume the role of President of the subsidiary and report directly to Nathaniel T. Bradley.

From a strategic perspective, the acquisition positions both companies at the center of rapidly growing cybersecurity markets. According to Gartner, global spending on information security is projected to reach $240 billion by 2026. At the same time, AI-driven security solutions are expected to grow significantly, reflecting rising enterprise demand for intelligent threat detection and compliance automation.

Moreover, increasing cyber threats continue to drive urgency. IBM reports that the average data breach cost in the United States has reached $10.22 million, while the global average stands at $4.44 million. These figures underline the importance of proactive cybersecurity frameworks like the one CyberCatch offers.

Regulatory developments are also accelerating adoption. The U.S. Department of Defense has already initiated Phase 1 of its Cybersecurity Maturity Model Certification (CMMC) program, with stricter enforcement expected in 2026. CyberCatch’s platform is specifically designed to address such requirements across industries including defense, healthcare, manufacturing, and financial services.

At the same time, both companies are preparing for future threats in the post-quantum era. Google has set a 2029 target for transitioning to quantum-resistant cryptography. In response, CyberCatch is advancing its MARS-MABE encryption technology to meet emerging security standards and ensure long-term data protection.

CyberCatch’s platform uses generative AI to ensure organizations maintain required cybersecurity controls while generating a Cyber Hygiene Score. In addition, it deploys agentic AI to simulate real-world cyberattacks and produce a Cyber Breach Score. This continuous testing approach allows businesses to detect vulnerabilities early and implement corrective measures before threats materialize.

Furthermore, the platform conducts ongoing penetration testing across external, internal, and social engineering vectors. It aligns with leading compliance frameworks such as NIST CSF 2.0, ISO 27001, HIPAA, and PCI DSS, replacing traditional periodic testing with real-time cybersecurity monitoring.

Leadership remains a key strength for CyberCatch. Sai Huda, a recognized cybersecurity expert and author, leads the company alongside an advisory board that includes prominent figures such as Tom Ridge and other national security leaders.

Following the acquisition, CyberCatch’s platform will integrate into Datavault AI’s broader ecosystem, enhancing solutions like DataValue®, DataScore®, and Information Data Exchange®. This integration is expected to provide customers with a unified platform that combines secure data infrastructure, AI-driven analytics, and continuous compliance monitoring.

“Cybersecurity is no longer a separate stack from data and AI – it is the precondition for both. CyberCatch’s continuous compliance platform is expected to provide another strategic advantage by adding to DataValue®, DataScore®, and the IDE® a real-time risk and compliance signal at every node of our quantum-secured edge fleet, from federal contractors to enterprise data customers,” said Nathaniel T. Bradley, CEO of Datavault AI.

“Datavault AI’s quantum-ready edge platform is exactly the next-generation infrastructure our customers and the marketplace in critical sectors such as in defense, healthcare, and financial services need cybersecurity built into. Joining Datavault AI gives them a clear path to a unified secure-data platform with continuous compliance and cyber risk mitigation built in,” said Sai Huda, founder, Chairman, and Chief Executive Officer of CyberCatch.

The companies have agreed to negotiate a definitive agreement within a 45-day exclusivity period. The transaction remains subject to due diligence, regulatory approvals, shareholder consent, and stock exchange clearances. Once finalized, the deal is expected to position Datavault AI as a stronger player in AI-driven cybersecurity and quantum-resilient risk mitigation.

Source – Businesswire

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