Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Datavault AI Targets Canadian CyberCatch In $136.8M Deal
May 1, 2026 | NCFA Fintech Market Activity | Risk Compliance And Regtech, Artificial Intelligence And Data
AI Driven Compliance And Cyber Risk Platform
On May 1, 2026, Datavault AI and CyberCatch announce a binding letter of intent for Datavault AI to acquire 100% of CyberCatch in an all stock transaction structured as a court approved plan of arrangement under the Business Corporations Act (British Columbia).
The proposed deal values CyberCatch at about CAD $136.8 million (CAD $5.11 per share). CyberCatch shareholders would hold about 7.52% of the combined company, with Datavault AI shareholders holding about 92.48% on a non fully diluted basis.
CyberCatch CYBE is listed on the TSX Venture Exchange and OTCQB US Venture Market, focuses on continuous compliance and AI driven cyber risk testing. Its platform uses generative AI to assess whether controls are in place, then uses agentic AI to simulate attack scenarios and produce a Cyber Breach Score. The model is built around continuous validation rather than periodic audit cycles.
See: Anthropic Mythos Redraws AI Cyber Risk Boundaries
Timing aligns with rising demand for continuous security assurance. The release cites Gartner estimates that global information security spending will reach $240 billion in 2026, while AI driven security could grow to $160 billion by 2029 (up from $49 billion 2025). IBM’s 2025 Cost of a Data Breach report places the average U.S. breach at $10.22 million and the global average at $4.44 million.
Regulatory pressure is picking up. The U.S. Department of Defense started rolling out its CMMC program on Nov 10, 2025, and stricter certification requirements are expected to expand in 2026 across about 220,000 contractors and suppliers. CyberCatch aligns its platform with widely used standards such as CMMC 2.0, NIST, ISO 27001, HIPAA, and PCI.
There’s also a growing focus on future security risks. As computing power increases, current encryption methods may become easier to break. CyberCatch is working on quantum resistant encryption, and signs like Google’s 2029 timeline for upgrading its systems show that companies are starting to prepare now.
Nathaniel T. Bradley, CEO, Datavault AI:
“Cybersecurity is no longer a separate stack from data and AI - it is the precondition for both. CyberCatch's continuous compliance platform is expected to provide another strategic advantage by adding to DataValue®, DataScore®, and the IDE® a real-time risk and compliance signal at every node of our quantum-secured edge fleet, from federal contractors to enterprise data customers.”
For Datavault AI, the transaction adds a compliance layer to its broader data, edge computing, and tokenization infrastructure. The company positions CyberCatch as a way to deliver real time assurance across regulated environments, including fintech, healthcare, energy, and defence.
See: AI Security Models Create A Patch Overload Crisis
CyberCatch brings a Canadian public market cybersecurity and regtech platform into a U.S. AI infrastructure strategy.
The transaction is subject to a definitive agreement, due diligence, board approvals, CyberCatch shareholder approval, British Columbia court approval, Nasdaq approval, TSX Venture Exchange approval, and other customary closing conditions. The parties have agreed to a 45 day exclusivity period.
Talking Point
Will continuous, AI driven compliance become a required layer for regulated industries, or will firms continue relying on periodic audits that do not reflect real time risk?
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