Defense AI Startup Space-Eyes to Go Public in $638 Million SPAC Merger
Backed by Eric Trump, the Miami-based firm faces a steep valuation relative to its $1 million annual revenue.
Miami-based defense tech startup Space-Eyes has agreed to go public through a merger with McKinley Acquisition Corp. The deal signals a high-stakes bet on the future of AI-driven geospatial intelligence and counter-drone technology.
The merger values the combined entity at $638 million in pro forma equity, with an implied enterprise value of approximately $370 million. According to deal terms, the transaction could generate up to $251.7 million in gross proceeds, comprising $176.7 million from McKinley’s trust and up to $75 million from private financing. Space-Eyes plans to trade on the Nasdaq under the ticker CUAS, with the merger expected to close in the fourth quarter of 2026.
The Technology Gap
Space-Eyes operates at the intersection of big data and national security. The company's core software is designed to fuse data from more than 75 different sources into a single operational picture, a capability that allows military and government users to synthesize disparate intelligence streams. As COO Dylan Monroe puts it: "Hardware detects. We make sense of it."
While the technology is ambitious, the company's current financial footprint is modest. Space-Eyes generates approximately $1 million in annual revenue. This creates a stark valuation gap, as the $370 million enterprise value represents a multiple of roughly 370 times its current annual sales. The company has transitioned from acting as a research-and-development contractor for the Air Force and Department of Defense toward a broader AI-driven defense play, including wildfire detection and counter-drone systems.
Strategic Implications
This valuation suggests that investors are pricing in massive future growth and the potential for significant government contracts rather than current performance. The company is positioning itself to mirror the high-margin software economics of firms like Palantir, targeting both the commercial and federal sectors.
Beyond the financials, the company carries significant political weight. Eric Trump serves as both an investor and strategic adviser to Space-Eyes. His involvement provides the firm with high-level political connections and a strategic bridge to Washington as it seeks to expand its federal security footprint and secure larger government contracts.
What to Watch
As the company moves toward its Q4 2026 closing date, the primary metric for success will be its ability to convert its AI capabilities into scalable revenue. Investors will be looking for confirmed contract wins that justify the current premium valuation. Whether Space-Eyes can successfully transition from a boutique R&D shop to a dominant Nasdaq-listed defense provider remains the central question for the upcoming merger.