Space-Eyes to Go Public in $638 Million Merger With McKinley Acquisition Corp.
The AI-driven defense firm will scale its counter-drone and geospatial intelligence tools via a SPAC business combination.
Space-Eyes, an AI-driven geospatial intelligence and counter-drone technology firm, has entered into a definitive business combination agreement with McKinley Acquisition Corp. (Nasdaq: MKLY). The merger, which values the combined entity at approximately $638 million, aims to accelerate the global deployment of advanced defense software.
Under the terms of the agreement, the combined company will leverage a significant capital injection to scale its operations. McKinley Acquisition Corp. has sourced up to $75 million in private investment in public equity (PIPE) financing to support the transition. As part of this arrangement, an initial $5 million is scheduled to be invested upon the filing of the S-4 registration statement. The transaction is expected to close in the fourth quarter of 2026.
The Technology Landscape
Space-Eyes operates at the intersection of artificial intelligence and defense, specializing in software that synthesizes data from satellites, radar, and radio-frequency sensors. This integration allows the company to provide critical geospatial intelligence and counter-unmanned aircraft system (C-UAS) capabilities. Led by CEO Jatin Bains and backed by Eric Trump, the firm focuses on providing real-time situational awareness in environments where drone threats are increasingly prevalent.
Strategic Implications
This merger underscores a broader trend of integrating AI and satellite data into modern warfare, particularly regarding the urgent need for counter-drone solutions. By transitioning to a public company via a special purpose acquisition company (SPAC), Space-Eyes secures the liquidity necessary to expand its footprint during a period of heightened global demand for geospatial intelligence. The ability to scale these tools rapidly is critical as defense agencies seek to mitigate the risks posed by autonomous aerial systems.
Future Outlook
Market observers will be watching the execution of the PIPE financing and the subsequent S-4 filing as the company moves toward its late 2026 closing date. While the valuation is set, the long-term success of the combined entity will depend on its ability to convert this capital into expanded government contracts and international partnerships. The deal signals a continuing appetite for defense-tech firms that can bridge the gap between raw sensor data and actionable AI intelligence.