Datavault AI to Acquire CyberCatch for $94.5 Million in Cash
The deal integrates AI-driven continuous compliance and quantum-resistant encryption into Datavault's infrastructure.
Philadelphia-based Datavault AI Inc. (NASDAQ: DVLT) has signed a definitive agreement to acquire 100% of CyberCatch Holdings, Inc. (TSXV: CYBE; OTCQB: CYBHF). The acquisition is a strategic move to embed continuous cyber risk mitigation directly into data infrastructure.
The transaction is valued at $94.5 million in cash, with Datavault AI paying $3.53 per share for approximately 26.8 million common shares. This cash-based agreement replaces a previous all-stock proposal announced in May. The deal will be structured as a court-approved plan of arrangement under British Columbia law.
The Shift to Continuous Compliance
CyberCatch specializes in an AI-enabled platform designed for continuous compliance and the mitigation of cyber risks. Unlike traditional security models that rely on periodic audits, CyberCatch utilizes generative AI to produce "Cyber Hygiene Scores" and employs agentic AI to conduct simulated penetration testing. A critical component of the acquisition is the integration of CyberCatch's MARS-MABE encryption technology, which is being developed to provide resistance against quantum computing threats.
This integration comes amid escalating digital threats. According to a 2026 CrowdStrike Global Threat Report, there was an 89% year-on-year increase in AI-enabled adversary operations in 2025. By absorbing these capabilities, Datavault AI intends to provide a persistent compliance layer for highly regulated sectors, including financial services, healthcare, and defense.
Strategic Implications
The acquisition signals a broader industry transition from periodic security assessments toward a model of constant, automated oversight. By merging AI-driven risk management with quantum-resistant encryption, Datavault AI is positioning its infrastructure to handle the security demands of the next generation of high-performance computing.
"Cybersecurity is no longer a separate stack from data and AI," said Nathaniel T. Bradley, CEO of Datavault AI. "It is the precondition for both."
What's Next
Following the court's approval of the plan of arrangement, the companies will move toward closing the transaction. Market observers will be watching how effectively Datavault AI integrates the MARS-MABE encryption into its existing platforms and whether the shift to a cash deal accelerates the deployment of these tools for its enterprise clients. While the core financial terms are set, the operational integration of the two firms remains the primary milestone for the coming months.