Datavault AI Inc. has signed a binding letter of intent to acquire 100 % of CyberCatch Holdings, Inc. in an all‑stock transaction that values the deal at approximately CAD 136.8 million. The transaction will be executed through a court‑approved plan of arrangement under the Business Corporations Act of British Columbia, and the share exchange will give Datavault AI stockholders 92.48 % of the combined company while CyberCatch shareholders will hold 7.52 %.
The acquisition will integrate CyberCatch’s patented, AI‑enabled SaaS platform for continuous compliance and cyber‑risk mitigation into Datavault AI’s SanQtum‑secured edge GPU ecosystem. The combination is intended to create a quantum‑resistant cybersecurity offering that leverages AI to simulate threat‑actor tactics and to provide real‑time control deficiency remediation. CyberCatch’s platform already supports NIST CSF 2.0, NIST 800‑171, CMMC 2.0, ISO 27001, HIPAA, and PCI DSS compliance, positioning the combined entity to serve regulated industries that demand end‑to‑end security.
Strategically, the deal expands Datavault AI’s AI‑driven security portfolio and accelerates its entry into the projected $240 billion global information‑security market for 2026. The acquisition also aligns with the company’s focus on quantum‑resistant solutions, as Google Quantum AI research indicates that cryptographically relevant quantum computing could be available as early as 2029. By adding CyberCatch’s continuous‑compliance engine, Datavault AI can offer a differentiated product that addresses the growing demand for AI‑amplified security, projected to reach $160 billion by 2029.
Datavault AI’s recent financial performance provides context for the transaction. The company reported its first profitable quarter in Q4 2025, with revenue of $33.8 million and a net profit of $661,000. For the full year 2025, revenue totaled $39.1 million, up from $2.67 million in 2024, and gross margin rose to 78 % from 14 % the previous year, although the company still recorded a net loss of $79 million. The acquisition is expected to support continued revenue growth and margin expansion as the combined platform scales.
CyberCatch’s leadership will be retained post‑acquisition. CEO Sai Huda will serve as President of the subsidiary and will report to Datavault AI CEO Nathaniel T. Bradley. This continuity is intended to preserve CyberCatch’s operational expertise while aligning it with Datavault AI’s broader strategy.
Industry trends underscore the relevance of the deal. CrowdStrike’s 2026 Global Threat Report notes that AI‑enabled adversary attacks rose 89 % year‑over‑year in 2025, with average e‑crime breakout times falling to 29 minutes—a 65 % increase in speed compared to 2024. These developments highlight the urgency for advanced, AI‑driven security solutions that can detect and respond to threats in real time.
The acquisition positions Datavault AI to capture a high‑growth segment of the cybersecurity market, leveraging its AI and quantum‑resistant capabilities. Synergies are expected from combining CyberCatch’s continuous‑compliance engine with Datavault AI’s edge GPU platform, potentially reducing time‑to‑market for new security offerings and expanding the company’s customer base in regulated sectors. The deal also provides a platform for future innovation in post‑quantum cryptography, aligning with the projected shift toward quantum‑resistant security protocols.
The letter of intent is subject to customary closing conditions, and no definitive closing date has been announced. The transaction will proceed once regulatory approvals and shareholder approvals are obtained, and the parties will continue to negotiate the final terms of the arrangement.
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