Datavault AI Buys CyberCatch to Forge Quantum-Ready Security Shield

PHILADELPHIA & SAN DIEGO – May 01, 2026 – In a significant move to counter future-generation cyber threats, data monetization firm Datavault AI announced today it has entered into a binding agreement to acquire CyberCatch Holdings in an all-stock transaction valued at approximately CAD $136.8 million. The acquisition aims to fuse Datavault AI's quantum-ready infrastructure with CyberCatch's advanced AI-driven compliance and security platform, creating a formidable, integrated defense system for a rapidly evolving digital landscape.

The deal will see Datavault AI (NASDAQ:DVLT) issue approximately 49.9 million new shares to acquire all 26.8 million outstanding shares of CyberCatch (TSXV:CYBE), a cybersecurity innovator known for its patented continuous compliance technology. Upon closing, CyberCatch will operate as a wholly-owned subsidiary from its San Diego headquarters, with its founder and CEO, Sai Huda, serving as its President.

A Strategic Merger for a New Era of Threats

The combination of Datavault AI and CyberCatch is positioned at the nexus of two massive, high-growth markets: cybersecurity and artificial intelligence. According to industry analyst firm Gartner, worldwide spending on information security is projected to hit $240 billion by 2026, while the AI-amplified security segment is expected to balloon from $49 billion in 2025 to $160 billion by 2029. This spending is driven by the escalating cost and frequency of cyberattacks, with IBM's latest report calculating the average U.S. data breach cost at a staggering $10.22 million.

Leadership from both companies framed the acquisition as a necessary evolution, where security is no longer an add-on but a fundamental prerequisite for data operations.

“Cybersecurity is no longer a separate stack from data and AI - it is the precondition for both," said Nathaniel T. Bradley, CEO of Datavault AI, in a statement. He explained that integrating CyberCatch's platform would add a "real-time risk and compliance signal at every node of our quantum-secured edge fleet," providing a strategic advantage for customers from federal contractors to large enterprises.

Sai Huda, founder and CEO of CyberCatch, echoed this sentiment. “Datavault AI’s quantum-ready edge platform is exactly the next-generation infrastructure our customers and the marketplace in critical sectors such as in defense, healthcare, and financial services need cybersecurity built into," he stated. "Joining Datavault AI gives them a clear path to a unified secure-data platform with continuous compliance and cyber risk mitigation built in.”

The Race Against the Quantum Clock

A key driver behind the acquisition is the looming threat of quantum computing. While powerful quantum machines promise revolutionary advancements, they also pose an existential risk to current encryption standards. Researchers at Google Quantum AI recently demonstrated that the elliptic curve cryptography protecting countless digital systems could be broken by a quantum computer far less powerful than previously thought.

This has accelerated the timeline for "Q-Day"—the moment quantum computers can crack today's security—with Google setting an internal 2029 deadline to migrate its own systems to quantum-resistant cryptography. The industry is now in a race to develop and deploy Post-Quantum Cryptography (PQC) before critical infrastructure becomes vulnerable.

This is where CyberCatch’s technology becomes a crown jewel for Datavault AI. CyberCatch is in the process of converting its patent-pending MARS-MABE (multi-authority, attribute-based encryption with revocation) technology to be quantum-resistant. Unlike traditional encryption, MARS-MABE allows for fine-grained data access based on user attributes and enables instant revocation of access without re-encrypting entire datasets. By integrating this next-generation encryption with continuous AI-powered penetration testing, the combined company aims to offer a security stack that is not only robust today but also prepared for the threats of tomorrow.

Continuous Compliance in a Regulated World

Beyond future threats, the acquisition directly addresses the pressing, present-day challenge of regulatory compliance. Governments and industry bodies are imposing increasingly stringent cybersecurity mandates, with severe penalties for failure.

A prime example is the U.S. Department of Defense’s Cybersecurity Maturity Model Certification (CMMC) 2.0 program, which affects an estimated 220,000 contractors in the Defense Industrial Base. Phase 1 of the program began in late 2025, with mandatory third-party assessments for key contracts starting in November 2026. Compliance is no longer optional; it is a prerequisite for doing business with the DoD.

CyberCatch's platform is purpose-built for this environment. It uses generative AI to ensure all legally required controls are in place and agentic AI to continuously simulate attacker techniques, performing penetration tests that replace sporadic manual checks. The platform maps directly to frameworks like CMMC, NIST 800-171, HIPAA for healthcare, and ISO 27001 for financial services, providing organizations with a constant, automated pulse on their compliance and security posture. This capability is critical in sectors where a single compliance failure can lead to multi-million dollar fines, contract loss, and irreparable reputational damage.

Integrating Security from the Edge to the Cloud

Following the acquisition, CyberCatch’s platform will not just be a standalone product but the foundational security layer across Datavault AI's entire technology suite. This includes its DataValue® and Information Data Exchange® (IDE®) platforms, which are used for data valuation and tokenization in industries ranging from sports and entertainment to biotech and energy.

Crucially, the security layer will extend to Datavault AI's ambitious SanQtum AI edge platform, a planned network of 1,000 urban micro-edge neocloud sites across more than 100 U.S. cities by the end of 2026. By embedding CyberCatch’s continuous compliance and threat detection capabilities into this quantum-resistant, zero-trust infrastructure, Datavault AI intends to offer customers an unparalleled, end-to-end secure environment for compute and data analytics. This integration transforms security from a reactive measure into a proactive, inherent property of the entire data ecosystem.

The transaction is subject to the negotiation of a definitive agreement, due diligence, and customary approvals from shareholders, courts, and stock exchanges, including The Nasdaq Stock Market and the TSX Venture Exchange. Both parties have entered a 45-day mutual exclusivity period to finalize the terms, marking a pivotal step toward creating a new powerhouse in next-generation, secure data infrastructure.