Datavault AI Inc. , a provider of data monetization, credentialing, digital engagement, and real-world asset tokenization technologies, and CyberCatch Holdings, Inc., a cybersecurity company offering a patented, AI-enabled platform for continuous compliance and cyber risk mitigation, announced they have entered into a binding letter of intent under which Datavault AI and CyberCatch will enter into a definitive agreement for Datavault AI to acquire 100% of CyberCatch in an all-stock transaction structured as a court-approved plan of arrangement under the Business Corporations Act (British Columbia).
Under the LOI and subject to a definitive agreement, Datavault AI will acquire 100% of CyberCatch’s issued and outstanding common shares (being approximately 26.8 million shares) in exchange for approximately 49.9 million newly issued shares of Datavault AI common stock (the “Datavault AI Shares”) at CAD $5.11 per CyberCatch share, which implies an aggregate value to CyberCatch’s issued and outstanding common shares of CAD $136,843,820. All issued and outstanding CyberCatch securities convertible into or exercisable for CyberCatch common shares will be exchanged for Datavault AI Shares on a cashless exercise basis at a deemed value of USD $2.00 per Datavault AI Share. Upon closing of the transaction, subject to customary board, stock exchange, and any necessary regulatory and shareholder approvals, it is anticipated that Datavault AI stockholders will hold approximately 92.48% and CyberCatch shareholders approximately 7.52% of the equity of Datavault AI, on a non-fully diluted basis. It is anticipated that CyberCatch will operate as a subsidiary of Datavault AI from San Diego, California, and CyberCatch founder, Chairman, and Chief Executive Officer Sai Huda will serve as President of the subsidiary, reporting to Nathaniel T. Bradley, CEO of Datavault AI.
Strategic Rationale
The combination is positioned at the intersection of two of cybersecurity’s largest secular markets. According to Gartner, worldwide end-user spending on information security is projected to reach $240 billion in 2026, and Gartner separately projects the AI-amplified security segment will reach $160 billion by 2029, up from $49 billion in 2025. According to IBM’s 2025 Cost of a Data Breach Report, the average U.S. data breach now costs $10.22 million, with a global average of $4.44 million.
Regulatory tailwinds are converging with that demand picture. Phase 1 of the U.S. Department of Defense’s Cybersecurity Maturity Model Certification (“CMMC”) program took effect on November 10, 2025, with mandatory third-party C3PAO assessments for Level 2 contracts beginning in November 2026 and full enforcement extending across approximately 220,000 Defense Industrial Base contractors and subcontractors. CyberCatch’s platform is purpose-built to address that mandate in defense, HIPAA in healthcare, NIST 800-171 in manufacturing, NIST CSF 2.0 in financial services, among others.
The combination is also positioned for the post-quantum security era. Google has set 2029 as its internal deadline to migrate authentication systems to quantum-resistant cryptography. Separately, Google Quantum AI research demonstrated that the elliptic curve cryptography protecting many digital signatures and authentication systems could be broken by a superconducting quantum computer with fewer than 500,000 physical qubits, an order of magnitude lower than previous estimates. CyberCatch is converting its patent-pending, multi-authority, attribute-based encryption with revocation (“MARS-MABE”) technology to attain quantum-resistance, and combining MARS-MABE with continuous agentic AI penetration testing creates a next-generation cybersecurity stack applicable across healthcare, defense, manufacturing, financial services, and energy.
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About CyberCatch’s Platform and Leadership
CyberCatch’s patented, AI-enabled continuous cybersecurity compliance and risk mitigation solution:
- Uses generative AI to ensure all legally required controls are in place and calculates a Cyber Hygiene Score
- Uses agentic AI to continuously simulate threat-actor tactics, techniques, and procedures to perform penetration tests and calculates a Cyber Breach Score
- Detects gaps for prompt remediation before a threat actor can exploit and be successful
The platform tests cybersecurity controls continuously from three dimensions, outside-in, inside-out, and social engineering, mapping to NIST CSF 2.0, NIST 800-171, CMMC 2.0, ISO 27001, HIPAA, PCI DSS, and other regulated frameworks, replacing once-a-year manual penetration tests with continuous agentic AI penetration testing using specialized skill-set agents.
MARS-MABE provides several distinct advantages over current RSA and AES-256 encryption, such as:
- Access to data is provided only if fine-grained user attributes are met
- Access to users can be limited to fine-grained data subsets
- Instant revocation of user access to data subsets, eliminating the need to re-encrypt the entire data set and providing speed and significant cost savings
CyberCatch is led by founder, Chairman, and Chief Executive Officer Sai Huda, a globally recognized cybersecurity expert, author of the bestselling Next Level Cybersecurity, co-author of Canada’s National Cybersecurity Standard, and inventor of USPTO Patent No. 11,297,094, “Automated and Continuous Cybersecurity Assessment with Measurement and Scoring.” He is the former founder and CEO of Compliance Coach, which was acquired by FIS, a FORTUNE 500 company, where he served as GM, Risk, Information Security, and Compliance Solutions.
CyberCatch’s board and advisory board include:
- Tom Ridge, former special assistant to U.S. President, first Secretary of the U.S. Department of Homeland Security and two-term Governor of Pennsylvania
- Dr. Marv Langston, former Director of Information Systems at U.S. DARPA and Cybersecurity Chief, U.S. Navy
- Scott Tait, former U.S. Navy Commander and National Security Advisor at the Joint Chiefs at the U.S. Pentagon
CyberCatch’s customers span the U.S. defense supply chain, healthcare, financial services, manufacturing, education, and public sectors, and the Company’s capabilities were extended through the February 2026 acquisition of multi-authority attribute-based encryption technology, now branded MARS-MABE, and through 2026 reseller and referral partnerships such as with Speridian Technologies and other multiple reseller partners to U.S. government agencies.
Added Strategic Benefit: Platform Integration and Cyber Defense Layer Across the Datavault AI Stack
Following closing, CyberCatch’s AI-enabled Software-as-a-Service platform is also expected to operate as the cybersecurity and continuous-compliance layer across Datavault AI’s existing technology suite, including:
- DataValue®, DataScore®, and Information Data Exchange® (IDE®) running natively on Available Infrastructure’s SanQtum AI quantum-resistant, zero-trust edge platform across 1,000 urban micro-edge neocloud sites planned in 100+ U.S. cities by year-end 2026
- Acoustic Sciences division technologies (WiSA®, ADIO®, Sumerian®) and IDE® deployments serving sports, entertainment, biotech, education, fintech, real estate, healthcare, and energy customers
- Federal and regulated-industry customer workloads where continuous compliance attestation against NIST, CMMC, ISO 27001, SOC 2, HIPAA, and PCI DSS frameworks is increasingly a precondition for procurement, audit, and renewal
The proposed acquisition is intended to give Datavault AI customers and partners an integrated path from secure compute through AI-driven data analytics, with continuous attestation at every layer.
Source: Businesswire
