AI and Quantum-Resistant Cyber Solutions by 2029
Datavault AI Inc. has announced a binding letter of intent to acquire CyberCatch Holdings, Inc. This acquisition is anticipated to integrate CyberCatch's AI-enabled cyber risk mitigation solutions into Datavault AI's ecosystem. The move addresses a global information security market projected to reach $240 billion by 2026, according to Gartner.
Datavault AI will acquire all of CyberCatch's issued and outstanding common shares, approximately 26.8 million shares, in an all-stock transaction valued at CAD $136.8 million. This transaction is structured under a court-approved plan of arrangement.
Upon completion of the acquisition, Datavault AI shareholders are expected to hold about 92.48% of the merged entity, while CyberCatch shareholders will own approximately 7.52%. The acquisition also involves exchanging CyberCatch securities convertible into Datavault AI shares on a cashless exercise basis.
Nathaniel T. Bradley, CEO of Datavault AI, emphasised the strategic importance of this acquisition. He stated, "Cybersecurity is no longer a separate stack from data and AI – it is the precondition for both." CyberCatch's platform is designed for continuous compliance and cyber risk mitigation, which is crucial across various sectors, including defence, healthcare, and finance.
Strategic Rationale for the Acquisition
The acquisition positions Datavault AI to enhance its AI and quantum-resistant cyber solutions. CyberCatch's post-quantum cryptography conversion plan is expected to place the combined company ahead of the AI-enabled 'Q-Day' quantum-attack horizon, now anticipated as early as 2029 according to Google.
Sai Huda, CEO of CyberCatch, will become President of the new subsidiary, operating from San Diego. He remarked, "Datavault AI's quantum-ready edge platform is exactly the next-generation infrastructure our customers need."
The transaction is pending customary approvals, including board, regulatory, and shareholder consents. The parties aim to finalise a definitive agreement within 45 days. This acquisition is expected to bolster Datavault AI's technology suite by integrating CyberCatch's patented, AI-enabled platform.
AI-enabled adversary attacks have risen significantly, with an 89% increase in 2025 compared to the previous year. This underscores the importance of CyberCatch's solutions. The average eCrime breakout time also fell to 29 minutes, marking a 65% increase in adversary speed compared to 2024, as reported by CrowdStrike's 2026 Global Threat Report.
Last updated: 2 May 2026, 3:49 am
