Datavault AI Acquires CyberCatch Holdings for $94.5 Million

Datavault AI plans to acquire CyberCatch Holdings for $94.5 million, integrating advanced cybersecurity capabilities into its platform. This acquisition aims to enhance Datavault AI's offerings with CyberCatch's AI-powered continuous compliance and penetration testing, further bolstered by encryption technologies poised to withstand quantum computing threats. This strategic move supports Datavault AI's ambition to embed robust cybersecurity features in its data monetization and tokenization solutions.

Under the terms of the acquisition, Datavault AI will purchase approximately 26.8 million outstanding shares of CyberCatch at $3.53 per share. The agreement also stipulates a cashless-exercise exchange for outstanding dilutive securities. Set to proceed under the Business Corporations Act of British Columbia, the transaction requires CyberCatch shareholder approval along with regulatory endorsements. Post-acquisition, CyberCatch will be a wholly owned subsidiary of Datavault AI, continuing operations from its San Diego base. Sai Huda, CyberCatch’s founder and CEO, will become the subsidiary's president, reporting to Datavault AI CEO Nathaniel T. Bradley.

CyberCatch's software platform, which features AI agents for continuous cyber risk assessment and automated penetration testing, complements Datavault AI's technological ecosystem. The platform's cybersecurity evaluations utilize generative and agentic AI to issue Cyber Hygiene and Cyber Breach Scores, intended to improve compliance and security measures. This enhances Datavault AI's existing infrastructure, spanning various sectors such as defense, healthcare, and financial services, by integrating more sophisticated cybersecurity measures across its products and services.

The transaction reflects a broader industry trend where deeper cybersecurity integration is increasingly necessary to meet complex regulatory frameworks and safeguard against advancing threat landscapes. By obtaining CyberCatch’s technological assets, Datavault AI intends to fortify its offerings for clients in regulated sectors and among federal contractors, where stringent compliance and cybersecurity measures can affect procurement and audit outcomes. CyberCatch clients are spread across several sectors, including the U.S. defense supply chain and public sector markets, heightening Datavault AI's market penetration potential.

Completion remains subject to approval from CyberCatch shareholders, relevant court mandates in British Columbia, and the TSX Venture Exchange. Upon finalization, Datavault AI anticipates leveraging CyberCatch’s technologies to support its services, expanding its penetration within industries that value continuous cybersecurity oversight. This deal underscores the increasing importance of cybersecurity in data management sectors, as companies continue to adapt to regulatory demands and technological advancements.