Datavault AI Inc. (NASDAQ: DVLT), a leader in data monetization and Web3 asset tokenization, has entered a binding letter of intent to acquire CyberCatch (TSXV: CYBE) (OTCQB: CYBHF), a cybersecurity firm specializing in AI-powered compliance and risk mitigation. The all-stock transaction, valued at approximately CAD $136.8 million, will see CyberCatch operate as a subsidiary of Datavault AI, with founder and CEO Sai Huda serving as president of the subsidiary.
The acquisition marks a strategic expansion for Datavault AI, which already offers a cloud-based platform for monetizing real-world assets (RWAs) through tokenization, digital engagement, and credentialing. By integrating CyberCatch's patented AI-enabled platform for continuous compliance and cyber risk mitigation, Datavault AI aims to provide end-to-end security for digital assets in the Web3 ecosystem. "This combination addresses the growing need for secure and compliant data monetization solutions," said a company spokesperson.
Datavault AI's existing technology suite includes its Acoustic Science Division, featuring WiSA, ADIO, and Sumerian patented technologies for spatial and multichannel wireless HD sound transmission, and its Data Science Division, which leverages Web3 and high-performance computing for experiential data perception and valuation. The company's Information Data Exchange (IDE) enables Digital Twins and secures physical objects to immutable metadata, fostering responsible AI. The addition of CyberCatch's cybersecurity capabilities is expected to enhance the security of these data transactions.
CyberCatch, headquartered in San Diego, California, provides a patented AI platform that helps organizations achieve continuous compliance with regulations such as HIPAA, GDPR, and PCI DSS, while also mitigating cyber risks. The platform uses AI to automate compliance monitoring and threat detection, which could be integrated into Datavault AI's offerings to protect tokenized assets and digital identities. "We are excited to join Datavault AI and bring our cybersecurity expertise to a broader audience," said Sai Huda.
The deal is subject to customary closing conditions, including regulatory approvals and shareholder votes. It is expected to close in the first half of 2025. Analysts view the acquisition as a response to increasing cybersecurity threats in the Web3 space, where decentralized finance and NFT platforms have been targets of high-profile hacks. By combining data monetization and cybersecurity, Datavault AI positions itself as a comprehensive provider for enterprises seeking to capitalize on Web3 while maintaining compliance and security.
For more information, visit the company's newsroom at https://ibn.fm/DVLT and the full press release at https://ibn.fm/lktOf.
