A little-known defense technology startup with roughly $1 million in annual revenue is preparing for Wall Street with a valuation that says far more about where investors believe the defense market is heading than where the company stands today.
Space-Eyes, a Miami-based developer of artificial intelligence-powered counter-drone and geospatial intelligence systems, has agreed to go public through a merger with special purpose acquisition company McKinley Acquisition Corp, according to Reuters. The transaction values the combined company at approximately $638 million and is expected to provide up to $251.7 million in gross proceeds, according to people familiar with the matter.
“Defense technology company Space-Eyes has agreed to go public through a merger with special purpose acquisition company McKinley Acquisition Corp, in a deal valuing the combined business at $638 million,” Reuters reported, citing four people familiar with the matter.
The deal carries another headline-grabbing element. Eric Trump, the son of President Donald Trump, has become the third-largest private investor in Space-Eyes and is expected to serve as a strategic adviser after the company enters the public markets.
Eric Trump takes strategic adviser role as Space-Eyes targets growth
People familiar with the transaction said Eric Trump played a role in introducing potential board candidates and is expected to advise the company on security threats involving drones and other emerging technologies. His role will draw on experience with security issues surrounding the White House.
“He is an important adviser that connects us to people and opportunities, and he is an adviser that brings the intelligence,” one of the people said.
The merger is expected to close during the fourth quarter of 2026, pending shareholder and regulatory approval. The combined company plans to list on the Nasdaq under the ticker symbol “CUAS,” a reference to counter-unmanned aerial systems.
A bet on future contracts instead of current revenue
Space-Eyes remains an early-stage startup. It has operated primarily as a research and development business and generates roughly $1 million in annual revenue, according to people familiar with its finances.
That modest revenue base stands in sharp contrast with its public market valuation. Investors backing the transaction are placing their confidence in expected contract growth rather than existing financial performance.
The company is negotiating contracts worth about $35 million over five years, the people told Reuters. Current awards typically range from $300,000 to $400,000 annually.
Potential projects span several sectors and regions. Discussions include monitoring drug trafficking across the Caribbean, supporting defense operations in the Middle East, and helping prevent drone-borne contraband from entering U.S. prisons.
Space-Eyes plans to scale production through third-party manufacturing partners instead of building large manufacturing operations internally. That approach gives the company room to pursue government contracts across multiple regions and expand into commercial customers such as cruise operators and data center operators.
Building AI systems for a growing drone threat
The company’s business centers on collecting and analyzing data from satellites, radar systems, radio frequency sensors, and other sources to detect, track, and respond to drone activity.
Its SeaWatch platform provides maritime intelligence by tracking vessels through satellite imagery and sensor data. Another platform, Morpheus, uses artificial intelligence to identify and mitigate unmanned aerial threats in real time.
Demand for these technologies has climbed as drones become increasingly common across military operations, border security, critical infrastructure protection, and commercial environments. Governments have increased spending on drone detection, autonomous systems, and AI-assisted battlefield intelligence, creating fresh opportunities for companies focused on software-driven defense capabilities.
Following a software-first defense model
People familiar with the company said Space-Eyes has drawn inspiration from software and data analytics businesses such as Palantir. The comparison reflects a broader shift taking place across the defense sector.
Software companies serving government customers often generate substantially higher operating margins than traditional defense manufacturers that depend on hardware production. Palantir, one of the largest U.S. government software contractors, reported an adjusted operating margin of 60% during the first quarter, far above the single-digit margins commonly seen across conventional defense hardware businesses.
Space-Eyes appears to be pursuing a similar strategy by focusing on data analysis, intelligence software, and AI-driven decision systems rather than manufacturing large volumes of physical defense equipment.
SPAC market finds new opportunities in defense technology
SPACs (short for special purpose acquisition companies) fueled one of Wall Street’s biggest investment booms between 2020 and 2022 before many newly public companies struggled to meet growth expectations.
SPACs are shell companies that go public with one goal: to merge with a real business. Once that happens, the private company takes over the SPAC’s public listing. So far in 2026, SPACs are behind 135 of the 210 IPOs in the U.S., according to SPACAnalytics.com.
Activity has slowed considerably since then. Yet defense technology has emerged as one of the few sectors attracting renewed interest as geopolitical tensions, military modernization programs, and advances in artificial intelligence reshape government procurement priorities.
Founded by Chief Executive Officer Jatin Bains and Chief Operating Officer Dylan Monroe, Space-Eyes disclosed earlier this year that it was opening a Washington office to strengthen relationships with federal agencies and support future government contracting efforts.
The planned Nasdaq debut marks a significant milestone for the startup. Whether the company’s ambitious valuation proves justified will depend less on today’s revenue than on its ability to convert a growing pipeline of defense and security opportunities into long-term contracts after it reaches the public markets.
