Datavault AI agrees USD $94.5m CyberCatch takeover

Datavault AI has agreed to acquire CyberCatch in an all-cash deal that values the cybersecurity company at USD $94.5 million.

Under the agreement, Datavault AI will buy all of CyberCatch's issued and outstanding common shares, about 26.8 million in total, for USD $3.53 a share. The deal is structured as a court-approved plan of arrangement under British Columbia's Business Corporations Act and still requires shareholder, court, stock exchange, and regulatory approvals.

If the acquisition closes, CyberCatch will operate as a Datavault AI subsidiary based in San Diego. Founder, Chairman, and Chief Executive Officer Sai Huda is expected to become President of the subsidiary and report to Datavault AI Chief Executive Officer Nathaniel T. Bradley.

The proposed purchase adds a cybersecurity software business to Datavault AI's broader data and infrastructure operations. CyberCatch sells an artificial intelligence-based platform focused on continuous compliance checks and cyber risk mitigation, serving customers across the US defence supply chain, healthcare, financial services, manufacturing, education, and the public sector.

CyberCatch's software verifies that required security controls are in place and tests those controls continuously. Its system examines organisations from three directions, outside-in, inside-out, and social engineering, and maps findings against frameworks including NIST CSF 2.0, NIST 800-171, CMMC 2.0, ISO 27001, HIPAA, and PCI DSS.

The offering is intended to replace or supplement annual manual penetration testing with continuous automated testing. According to CyberCatch, many companies cannot afford the cost or time required for full-scale tests by human specialists, while those that can often conduct them only once a year.

Integration plans

CyberCatch's software is expected to become the cybersecurity and continuous-compliance layer across Datavault AI's existing products, including DataValue, DataScore, and Information Data Exchange, as well as systems linked to its Acoustic Sciences division.

Datavault AI operates across markets including sports, entertainment, biotech, education, financial technology, real estate, healthcare, and energy. The addition of a continuous compliance tool is also expected to support work with federal customers and other regulated industries, where security certification is often tied to procurement and audit requirements.

The acquisition also gives Datavault AI an entry into a larger cybersecurity market as companies face tighter compliance demands and faster attacks. The announcement cited Gartner projections that global end-user spending on information security would reach USD $213 billion in 2025.

It also cited CrowdStrike research showing that artificial intelligence-enabled adversary attacks rose 89% year on year in 2025, while the average time from first intrusion to data exfiltration fell to 29 minutes. Those figures point to an environment in which companies are under pressure to identify control failures more quickly.

Encryption focus

Another element of the deal centres on post-quantum security. CyberCatch has been developing a patent-pending encryption technology known as MARS-MABE, which it says is being adapted to achieve quantum resistance.

The technology is intended to control access to data through user attributes, limit users to specific subsets of data, and revoke access without re-encrypting an entire data set. Datavault AI plans to combine that work with CyberCatch's automated testing tools within its own quantum-secured edge platform.

CyberCatch expanded that encryption work through an acquisition earlier in 2026. It has also built reseller and referral relationships, including with Speridian Technologies and other partners serving US government agencies.

CyberCatch's leadership and advisory network also appear to support the transaction's strategic logic. The company is led by Huda, who previously founded Compliance Coach before its sale to FIS, where he later served as General Manager, Risk, Information Security, and Compliance Solutions.

Its board and advisory board include Tom Ridge, the first US Secretary of Homeland Security, along with former senior defence and cybersecurity officials. That profile reflects CyberCatch's focus on regulated and security-sensitive sectors.

Bradley outlined Datavault AI's rationale for the deal in a statement accompanying the announcement.

"Cybersecurity is no longer a separate stack from data and AI," said Nathaniel T. Bradley, Chief Executive Officer, Datavault AI. "It is the precondition for both. CyberCatch's continuous compliance and cyber risk mitigation platform is expected to add to DataValue, DataScore, and IDE a real-time risk and compliance signal at every node of our edge fleet, from federal contractors to enterprise data customers."

Huda said the companies' offerings were complementary for customers in tightly regulated industries.

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