Datavault AI to Acquire CyberCatch for $94.5M in Cash

Datavault AI has signed a definitive agreement to acquire cybersecurity company CyberCatch Holdings for $94.5 million in an all-cash transaction, the companies announced. The deal values CyberCatch at $3.53 per share for approximately 26.8 million outstanding shares.

The acquisition brings CyberCatch's AI-enabled continuous compliance and cyber risk mitigation platform into Datavault AI's quantum-secured edge computing ecosystem. CyberCatch will operate as a subsidiary from San Diego, with founder and CEO Sai Huda serving as president of the unit reporting to Datavault CEO Nathaniel T. Bradley.

The transaction is structured as a court-approved plan of arrangement under British Columbia's Business Corporations Act and requires CyberCatch shareholder approval, court approval, and regulatory clearances from the TSX Venture Exchange.

Why it matters

The deal positions Datavault at the convergence of two urgent enterprise security challenges: the acceleration of AI-powered cyberattacks and the looming threat of quantum computing to current encryption standards. According to CrowdStrike's 2026 Global Threat Report cited in the announcement, AI-enabled adversary attacks rose 89% year-over-year in 2025, while the average time from initial intrusion to data theft fell to just 29 minutes—a 65% speed increase from 2024. Meanwhile, Google has set an internal 2029 deadline to migrate authentication systems to quantum-resistant cryptography, and recent Google Quantum AI research suggests the timeline for cryptographically relevant quantum computers may be shorter than previously estimated.

CyberCatch's platform and approach

CyberCatch's patented platform uses generative AI to verify legally required security controls are in place and calculate a "Cyber Hygiene Score." It deploys agentic AI to continuously simulate threat-actor tactics, perform penetration tests, and generate a "Cyber Breach Score" designed to detect gaps before attackers exploit them.

The platform tests cybersecurity controls continuously from three dimensions: outside-in, inside-out, and social engineering. It maps to frameworks including NIST CSF 2.0, NIST 800-171, CMMC 2.0, ISO 27001, HIPAA, and PCI DSS, replacing annual manual penetration tests with continuous automated testing using specialized AI agents.

CyberCatch's agentic AI solution comprises specialized agents that perform reconnaissance, vulnerability detection, selection of attacker tactics, exploitation, evidence gathering, and risk mitigation recommendations. The platform provides dashboard reporting mapped to control failures and compliance status for root cause analysis.

The company is also converting its patent-pending MARS-MABE (multi-authority, attribute-based encryption with revocation) technology to achieve quantum resistance. MARS-MABE is designed to grant data access only when fine-grained user attributes are met and enable instant revocation of user access without re-encrypting entire datasets.

Leadership and market context

Sai Huda, who will lead the CyberCatch subsidiary, is a recognized cybersecurity expert, author of "Next Level Cybersecurity," and co-author of Canada's National Cybersecurity Standard. He holds USPTO Patent No. 11,297,094 for automated and continuous cybersecurity assessment. Huda previously founded Compliance Coach, which was acquired by FIS.

CyberCatch's board includes Tom Ridge, former U.S. Secretary of Homeland Security; Dr. Marv Langston, former DARPA Director of Information Systems; and Scott Tait, former U.S. Navy Commander and National Security Advisor to the Joint Chiefs.

Gartner projected the global information security market would reach $213 billion in 2025, according to the announcement. CyberCatch serves customers across the U.S. defense supply chain, healthcare, financial services, manufacturing, education, and public sectors.

Following the close, CyberCatch's platform is expected to operate as the cybersecurity and continuous-compliance layer across Datavault AI's technology suite, including its DataValue, DataScore, and Information Data Exchange offerings running on the SanQtum quantum-resistant edge platform.

Details of the transaction were first reported in a Datavault AI press release issued August 14, 2026.