Datavault AI takes $94.5m step into AI-led compliance

Datavault AI takes $94.5m step into AI-led compliance

Datavault AI Inc., a NASDAQ-listed technology company spanning data monetisation, credentialing, digital engagement and real-world asset tokenisation, is moving further into the RegTech and cybersecurity markets through a $94.5m acquisition of CyberCatch Holdings, Inc.

The all-cash transaction will see Datavault AI acquire CyberCatch for $3.53 per share, covering approximately 26.8 million outstanding common shares. The deal is being completed through a court-approved arrangement under British Columbia’s Business Corporations Act and remains subject to board, stock exchange, regulatory and shareholder approval.

Rather than treating cybersecurity as a standalone capability, the acquisition is intended to bring compliance and cyber risk intelligence closer to the infrastructure and data layer. CyberCatch’s technology is designed to give organisations an ongoing view of their security posture, using AI to assess controls and identify potential weaknesses.

Its platform combines generative AI-based compliance assessments with agentic AI testing. The former evaluates regulatory controls and generates a Cyber Hygiene Score, while the latter continuously simulates attacker behaviour to produce a Cyber Breach Score. Testing covers outside-in, inside-out and social engineering scenarios.

The technology maps its findings against several established regulatory and security frameworks, including NIST CSF 2.0, CMMC 2.0, ISO 27001, HIPAA and PCI DSS. This gives customers operating in regulated sectors a mechanism for monitoring controls between formal assessments, rather than relying solely on periodic compliance reviews.

CyberCatch’s customer base includes organisations in financial services, defence, healthcare, manufacturing, education and government. The company also works with reseller partners including Speridian Technologies and Sterling Advisors Group. Following the transaction, CyberCatch will remain headquartered in San Diego and operate as a subsidiary of Datavault AI.

The companies are also looking beyond immediate compliance requirements. CyberCatch’s patent-pending MARS-MABE encryption technology is being developed towards quantum-resistant standards, while its agentic penetration testing capabilities are expected to continue. The combined offering will also be integrated across Datavault AI’s DataValue, DataScore and Information Data Exchange products, its Acoustic Sciences division and workloads serving federal and regulated-industry customers.

The acquisition reflects a broader shift in compliance technology towards more continuous monitoring, where organisations can identify control weaknesses and emerging cyber risks as they develop rather than waiting for the next audit cycle.

Datavault AI CEO Nathaniel T. Bradley said, “Cybersecurity is no longer a separate stack from data and AI. It is the precondition for both. CyberCatch’s continuous compliance and cyber risk mitigation platform is expected to add to DataValue, DataScore, and IDE a real-time risk and compliance signal at every node of our edge fleet, from federal contractors to enterprise data customers.”

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

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