-- Cybersecurity company CyberCatch Holdings (CYBE.V) entered into a binding letter of intent that will see Nasdaq-listed Datavault AI buy it in a deal valued at C$136.8 million, the company said Friday.
Under the terms, Datavault AI will acquire 100% of CyberCatch's issued and outstanding common shares in exchange for about 49.9 million newly issued shares of Datavault AI common stock at C$5.11 per CyberCatch share.
All issued and outstanding CyberCatch securities convertible into or exercisable for CyberCatch common shares will be exchanged for Datavault AI shares at a deemed value of US$2.00 per Datavault AI share.
Upon closing, Datavault AI stockholders will hold approximately 92.48% of Datavault AI while CyberCatch shareholders will hold 7.52%, on a non-fully diluted basis.
CyberCatch is expected to operate as a subsidiary of Datavault AI. CyberCatch founder, Chairman, and Chief Executive Officer Sai Huda will serve as president of the subsidiary, reporting to Nathaniel Bradley, CEO of Datavault AI.
The deal is expected to position Datavault AI to bring CyberCatch's AI-enabled cyber risk mitigation solution into Datavault AI's SanQtum-secured edge Graphics Processing Unit ecosystem. This would address a global information security market projected to reach US$240 billion in 2026, the companies said.