Eric Trump-backed defense technology company Space-Eyes to go public in $638 million SPAC deal
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
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, the companies said on Friday, confirming an earlier Reuters report. President Donald Trump's son Eric Trump has recently become the third-largest private investor in the original Space-Eyes, which has operated primarily as a research-and-development company and generated about $1 million in annual revenue, according to people familiar with the matter. Eric Trump will serve as a strategic adviser to the combined business following the transaction. He helped introduce potential board candidates to the new public company, the people said. “The technology Space-Eyes is developing is absolutely critical for the safety of our nation,” Eric Trump said in a press release. "I am proud to be part of this important mission.” His representatives did not respond to questions on measures to avoid any potential conflict of interest. The Miami-based company develops AI-powered counter-drone and geospatial intelligence technologies for governments and agencies. Space-eyes looking to expand? While it is so far mostly a technology developer, it plans to scale up the business using third-party manufacturers, allowing it to expand into government contracts on different continents and into corporate clients, from cruise companies to data centers, the sources said.
Also Read | Eric Trump takes on Sumo Grand champion during Japan trip The investment thesis is based on expected contract growth rather than existing revenue, the people said. The company is negotiating contracts worth around $35 million over five years, compared with the company’s current contracts that are typically valued annually at $300,000 to $400,000, the people said. Also Read | Eric Trump hints he could run for US President when Donald Trump's term ends Those could include monitoring drug trafficking in the Caribbean, defense applications in the Middle East or preventing drone-borne contraband from entering U.S. prisons, the people said. As part of his new role, Eric Trump is expected to advise the company on security threats posed by drones and other emerging technologies, drawing on his experience with security issues surrounding the White House. Also Read | Eric Trump hints he could run for US President when Donald Trump's term ends "He is giving us an understanding of some risk factors such as being stuck at the White House with drones overhead, or these attempted attacks on the presidential office," said Space-Eyes Chief Operating Officer Dylan Monroe, referring to security threats to President Trump.
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