Eric Trump-backed Space-Eyes to go public in $638M SPAC merger

Defense technology company Space-Eyes has agreed to go public through a merger with special purpose acquisition company McKinley Acquisition Corp , valuing the combined business at $638 million, according to four people familiar with the matter. President Donald Trump's son Eric Trump , recently the third-largest private investor in the original company, will serve as a strategic adviser after the transaction closes.

The Miami-based company builds AI-powered counter-drone and geospatial intelligence tools for governments and agencies. Its products include SeaWatch, a maritime tracking platform, and Morpheus, a counter-drone system. It has operated mostly as a research-and-development shop, generating about $1 million in annual revenue.

Space-Eyes plans to scale using third-party manufacturers, expanding into government contracts across continents and into corporate clients from cruise lines to data centers. The investment case rests on expected contract growth: it is negotiating deals worth roughly $35 million over five years, against current awards of $300,000 to $400,000 annually.

He helped introduce board candidates and is expected to advise on drone and emerging-technology threats, drawing on his experience with White House security. "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. Representatives for Eric Trump did not respond to a request for comment.

The transaction is expected to provide up to $251.7 million in gross proceeds, including capital in McKinley's trust account and a planned private investment in public equity, or PIPE, financing. The deal is expected to close in the fourth quarter of 2026, subject to shareholder and regulatory approvals, with the combined company trading on the Nasdaq under the ticker "CUAS."

SPACs have largely lost favor since the 2020-2022 boom, as many companies that went public through the vehicles struggled to meet growth projections after listing. Space-Eyes' thesis depends on winning contracts it does not yet hold.

The deal reflects growing investor interest in defense technology as governments increase spending on drone detection, autonomous systems and AI-driven intelligence. Space-Eyes models itself on software providers such as Palantir , which reported a 60% adjusted operating margin in the first quarter, far above the single-digit margins typical of traditional defense hardware contractors.