PHILADELPHIA, PA & SAN DIEGO, CA — Datavault AI (Nasdaq: DVLT) and CyberCatch Holdings (TSXV: CYBE; OTCQB: CYBHF) entered into a binding letter of intent for Datavault AI to acquire the cybersecurity company in an all-stock transaction valued at approximately CAD $136.8 million as the companies seek to expand into AI-driven cyber risk and compliance markets.
Under the proposed transaction, Datavault AI would acquire all outstanding CyberCatch shares in exchange for approximately 49.9 million newly issued Datavault AI shares at an implied value of CAD $5.11 per CyberCatch share.
The companies indicated Datavault AI shareholders would own about 92.48% of the combined company following the transaction, while CyberCatch shareholders would hold approximately 7.52%, excluding dilution effects.
CyberCatch would continue operating as a subsidiary based in San Diego, with founder and Chief Executive Officer Sai Huda expected to lead the unit and report to Datavault AI Chief Executive Officer Nathaniel T. Bradley.
The proposed acquisition remains subject to a definitive agreement, due diligence, shareholder approvals, court approval in British Columbia, and regulatory approvals from Nasdaq and the TSX Venture Exchange.
The companies framed the transaction as a push into expanding cybersecurity and compliance markets tied to artificial intelligence, regulated industries, and quantum-resistant encryption technologies.
Datavault AI cited Gartner projections estimating global information security spending will reach $240 billion in 2026, while AI-focused security markets could expand to $160 billion by 2029.
The companies also pointed to growing concern over AI-enabled cyberattacks and advances in quantum computing that could weaken existing cryptographic standards within the next decade.
CyberCatch’s platform uses artificial intelligence to monitor cybersecurity controls, simulate attack scenarios, and assess compliance with standards including NIST CSF 2.0, CMMC 2.0, HIPAA, PCI DSS, and ISO 27001.
The company also has been developing quantum-resistant encryption technology through its MARS-MABE platform, which Datavault AI indicated could become part of its broader SanQtum-secured edge computing infrastructure planned across more than 100 U.S. cities by the end of 2026.
“Cybersecurity is no longer a separate stack from data and AI — it is the precondition for both,” Bradley said in a statement.
Sai Huda described Datavault AI’s edge infrastructure strategy as aligned with increasing demand for integrated cybersecurity and compliance systems across defense, healthcare, financial services, and other regulated sectors.
CyberCatch’s advisory and leadership network includes former Homeland Security Secretary Tom Ridge and former U.S. defense and cybersecurity officials, according to the companies.
The parties agreed to negotiate a definitive agreement during a 45-day exclusivity period.
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