Northwire Canada EditionFriday, October 16, 2026
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M&A / Property Game Changer

Datavault AI and CyberCatch Announce Signing of Binding Letter of Intent for Datavault AI to Acquire CyberCatch to Accelerate AI-Driven, Quantum-Resistant Cyber Risk Mitigation Solutions

Datavault AI Bids for CyberCatch in $137 Million All-Stock Deal

Executive Summary
  • On May 1, 2026, Datavault AI Inc. announced a binding Letter of Intent (LOI) to acquire 100% of CyberCatch Holdings, Inc.
  • The transaction is valued at approximately CAD $136.8 million in an all-stock deal.
  • Offer price is set at CAD $5.11 per CyberCatch common share.
  • Datavault AI will issue approximately 49.9 million new shares to exchange for the 26.8 million CyberCatch shares outstanding.
  • Post-transaction, CyberCatch shareholders will hold approximately 7.52% of the combined entity (non-fully diluted).
  • CyberCatch CEO Sai Huda will transition to President of the subsidiary, reporting to Datavault AI CEO Nathaniel T. Bradley.
  • The deal is subject to a 45-day mutual exclusivity period, definitive agreement execution, due diligence, and regulatory/shareholder approvals.
Material Impact
  • Premium Analysis: The offer price of CAD $5.11 represents a premium of approximately 250% over the recent trading price of CAD $1.46 (Apr 30 close). This is an extraordinary arbitrage opportunity for current shareholders.
  • Strategic Fit: The acquisition integrates CyberCatch's MARS-MABE encryption technology into Datavault AI's quantum-secured edge GPU ecosystem, validating CyberCatch's IP value beyond its standalone revenue potential.
  • Historical Context: In September 2025, CyberCatch raised capital at $5.00 per unit (including warrants). The current offer price ($5.11) is slightly above that financing level, suggesting the acquirer values the company at least at the last private placement valuation despite public market trading significantly lower ($1.46).
  • Risk Factors: As a binding LOI rather than a definitive agreement, there remains execution risk over the 45-day exclusivity period. Regulatory approvals and shareholder votes are required. The all-stock nature exposes CyberCatch shareholders to Datavault AI's future stock volatility post-closing.
CYBE · Price
Company Overview
  • Company: CyberCatch Holdings Inc. (TSXV: CYBE).
  • Focus: AI-driven cybersecurity and continuous compliance solutions.
  • Flagship Project: MARS-MABE technology (multi-authority, attribute-based encryption with revocation) integrated into a SaaS platform for CMMC compliance and cyber risk mitigation.
  • Target Markets: Defense sector suppliers (CMMC regulation), healthcare, financial services, and public sector.
  • Development Status: Launched CMMC Level 1/2 solution in Nov 2025; acquired Atriarch Inc. in Feb 2026 to bolster encryption IP; now being acquired by Datavault AI.
Read the original news release →

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