Space-Eyes, a provider of AI-driven geospatial intelligence and counter-drone systems, has entered into a definitive business combination agreement with McKinley Acquisition (McKinley).
The deal, approved by the boards of both firms, is expected to close in the fourth quarter of 2026, subject to customary regulatory and shareholder approval.
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Following completion, the merged entity will operate as Space-Eyes, Inc. and plans to list its shares on the Nasdaq under the ticker “CUAS”, pending regulatory consent.
The agreement positions Space-Eyes to transition from research-focused operations to broader production contracts and market expansion.
Space-Eyes delivers sensor-agnostic counter-uncrewed aerial systems designed to detect, identify, and counter unauthorised drones in settings such as military sites, critical infrastructure, borders, and public venues, the company stated.
Its platforms integrate radar, radio frequency, optical, infrared, and satellite inputs through a proprietary AI fusion engine known as CATE AI, allowing clients to enhance existing sensor investments rather than replacing them.
The same AI engine supports the company’s broader geospatial intelligence platform, offering data fusion capabilities for land, sea, and air monitoring, targeting government and commercial customers.
The technology is used across a range of applications from drone detection to maritime security and wildfire monitoring, and Space-Eyes reports it is moving towards large-scale production contracts and increased procurement.
McKinley Acquisition Corp. CEO Peter Wright said: “Autonomous defence is a secular trend drawing strong investor attention and market demand.
“With Space-Eyes’ highly scalable, capital-efficient technology and a team that can secure meaningful contracts, we are well positioned to drive organic and inorganic growth and succeed as a public company.”
McKinley has secured up to $75m in private investment (PIPE), with an initial $5m tranche scheduled upon the filing of a related registration statement with the Securities and Exchange Commission.
The transaction values Space-Eyes at a pro-forma equity value of $638m and an implied enterprise value of $370m, based on McKinley’s trust assumptions and initial PIPE investment.
Reuters reported that Space-Eyes’ forthcoming merger follows Eric Trump, the son of US President Donald Trump, becoming the company’s third-largest private investor.
According to people familiar with the matter cited by Reuters, Eric Trump will serve as a strategic adviser to the new entity and has facilitated the introduction of potential board members.
Space-Eyes, previously operating primarily in research and development, has reportedly generated annual revenues of around $1m.
Space-Eyes CEO and founder captain Jatin Bains said: “Space-Eyes has spent two decades building technology, partnerships, and operational credibility to meet this challenge.
“This transaction gives us an opportunity with the capital and strategic foundation to accelerate growth, expand customer deployments, and fundamentally reshape how the world manages risk.”
The merger is scheduled to complete in late 2026, pending the fulfilment of regulatory, shareholder, and other customary closing conditions.
