Eric Trump-backed Space-Eyes to go public via $638M SPAC merger

Space-Eyes, a defense technology startup backed by U.S President Donald Trump’s son Eric Trump, has revealed it’s planning to go public through a merger with a special purpose acquisition company called McKinley Acquisition Corp. The deal will value the combined businesses at around $638 million, Reuters reported.

Eric Trump recently became the third-largest private investor in Space-Eyes, which has so far operated primarily as a research and development company and generates around $1 million in annual revenue, four people familiar with the business told Reuters. Following the completion of the transaction, he will serve as a strategic adviser to the combined business, having already introduced a number of prospective board candidates to the company’s management.

Miami-based Space-Eyes is a developer of artificial intelligence technologies focused on countering drone warfare and geospatial intelligence systems that are marketed to governments and militaries. Following the acquisition, the company reportedly intends to scale up its business by using third-party manufacturers. This will allow it to compete for government contracts in multiple countries and also target corporate clients ranging from data center operators to cruise companies, Reuters’ sources said.

Space-Eyes, led by founder and Chief Executive Officer Jatin Bains and Chief Operating Officer Dylan Monroe, describes itself as a software company that combines data from satellites, radio-frequency sensors, radar and other sources. It says it uses that information to detect, track and respond to drone-related threats and provide geospatial intelligence in real-time. Its main products include SeaWatch, which is a maritime intelligence platform that’s able to track vessels using satellite and sensor data, and Morpheus, an AI-powered counter-drone platform that’s focused on mitigating autonomous aerial threats.

The report added that Space-Eyes is currently negotiating contracts worth around $35 million over a five-year period. Its existing contracts reportedly bring in around $300,000 to $400,000 annually, the sources added. The contracts pertain to its software being deployed to monitor drug trafficking in the Caribbean, power defense applications in the Middle East and prevent contraband being smuggled into U.S. prisons via drones.

In his role as a strategic adviser, Eric Trump will help to advise the company on the latest security threats posed by drones and similar emerging technologies, drawing on his experience with security issues affecting the White House. “He is an important adviser that connects us to people and opportunities, and he is an adviser that brings intelligence,” one of the sources told Reuters.

The transaction will generate around $251.7 million in gross proceeds, including funds held in McKinley’s trust account and a planned private investment in public equity financing, the report said.

Space-Eyes is betting on the growing interest among investors in defense technology firms that use AI to combat drones, power autonomous systems and provide battlefield intelligence. Reuters reports that the company was inspired by the software and data analytics firm Palantir Technologies Inc., which is a major U.S. government contractor and reported an adjusted operating margin of more than 60% in its most recent earnings call. That compares with the single-digit margins of traditional defense companies.

SPACs are shell companies that raise cash through an initial public offering then use that money to merge with private firms and take them public. They became popular as an alternative to holding an IPO from 2020 to 2022, but many companies that went public through that route struggled to achieve their growth targets.

Reuters said the deal taking Space-Eyes public is expected to close in the fourth quarter of 2026, subject to shareholder and regulatory approval. The company will then start trading on the Nasdaq index under the ticker symbol “CUAS,” which is a reference to the term “counter-unmanned aerial systems.”

Image: Space-Eyes