McKinley Acquisition Corp. and Space-Eyes, Inc. have entered into a definitive business combination agreement that could bring Space-Eyes, an AI-driven defense and geospatial intelligence company, to the public market. The transaction is structured as a SPAC business combination, with the combined company expected to operate under the name Space-Eyes, Inc. and trade on Nasdaq under the proposed ticker symbol CUAS, subject to the completion of the transaction and required approvals.
The deal values the combined company at an estimated $638 million on a pro forma equity value basis, while the implied enterprise value is approximately $370 million under the transaction assumptions. McKinley’s trust account is expected to provide approximately $176.7 million, while the transaction also includes a proposed PIPE financing of up to $75 million.
For Space-Eyes, the transaction is not simply about becoming a publicly traded company. The company plans to use the public-market platform and potential capital access to expand its AI-powered counter-drone systems, geospatial intelligence capabilities, maritime monitoring solutions and defense-related technologies.
The transaction is expected to close in Q4 2026, subject to shareholder approval, regulatory approvals and other customary closing conditions.
Deal Snapshot
| Deal Detail | Information |
| SPAC / Acquirer | McKinley Acquisition Corp. |
| Current Ticker | NASDAQ: MKLY |
| Target Company | Space-Eyes, Inc. |
| Deal Type | SPAC Business Combination (Merger) |
| Agreement Date | July 30, 2026 |
| Announcement Date | July 31, 2026 |
| Pro Forma Equity Valuation | Approximately $638 million |
| Implied Enterprise Value | Approximately $370 million |
| McKinley Trust Account | Approximately $176.7 million |
| Proposed PIPE Financing | Up to $75 million |
| Base Transaction Consideration | $275 million |
| Potential Earn-Out | Up to 8 million shares |
| Expected Closing | Q4 2026 |
| Post-Transaction Company Name | Space-Eyes, Inc. |
| Proposed Nasdaq Ticker | CUAS |
| Key Technology | CATE AI |
| Main Business Areas | Counter-Drone, Geospatial Intelligence, Maritime Intelligence and Defense |
What Is Space-Eyes?
Space-Eyes, Inc. is a U.S.-based technology company focused on geospatial intelligence, artificial intelligence and defense applications.
The company’s technology is designed to combine information from multiple sources, including radar, radio-frequency systems, electro-optical and infrared sensors and satellite data. The goal is to turn these different streams of information into a unified intelligence picture that can help users understand what is happening in a particular area.
One of Space-Eyes’ key technology areas is Counter-Unmanned Aerial Systems (C-UAS). These systems are designed to detect, track and identify potentially unauthorized or hostile drones.
The company’s CATE AI platform is intended to combine data from different sensors and help operators identify objects and activities in real time.
Space-Eyes is also developing applications for maritime intelligence, defense, security and other geospatial use cases.
What Is McKinley Acquisition Corp.?
McKinley Acquisition Corp. is a Special Purpose Acquisition Company, commonly known as a SPAC.
Unlike a traditional operating company, a SPAC is created primarily to raise capital through a public offering and subsequently use that capital to complete a merger or business combination with a private company.
McKinley completed its IPO in 2025. According to SEC filings, it issued approximately 17.25 million units and raised about $172.5 million in gross proceeds, with the funds placed into a trust account.
The agreement with Space-Eyes gives McKinley a target operating business to combine with and provides Space-Eyes with a potential route to the public markets.
What Is the McKinley-Space-Eyes Transaction?
On July 30, 2026, McKinley, Space-Eyes and the relevant merger subsidiary entered into a Definitive Business Combination Agreement.
The transaction is structured so that McKinley will complete the required corporate restructuring and its merger subsidiary will merge with Space-Eyes. Following the transaction, Space-Eyes is expected to become the surviving operating company and a wholly owned subsidiary of McKinley before the combined structure is renamed Space-Eyes, Inc.
The new public company is expected to trade on Nasdaq under the proposed ticker CUAS.
However, the merger has not yet been completed. The companies still need to satisfy various closing conditions, including shareholder and regulatory approvals.
How Much Is the Deal Worth?
The transaction announcement gives the combined company a pro forma equity valuation of approximately $638 million.
The implied enterprise value is approximately $370 million.
These two figures should not be confused.
Equity value generally represents the value attributed to shareholders, while enterprise value considers the company’s business value after taking relevant debt and cash into account.
The $638 million figure is also based on specific transaction assumptions, including no redemptions from McKinley’s trust account and the initial portion of the proposed PIPE financing.
Therefore, the $638 million figure should be viewed as a transaction valuation, rather than saying that Space-Eyes will receive $638 million in cash.
How Much Capital Could Be Available?
McKinley’s trust account is expected to contain approximately $176.7 million.
In addition, the transaction includes a proposed PIPE financing of up to $75 million.
PIPE stands for Private Investment in Public Equity. It allows private investors to provide capital to a company in connection with a public-market transaction.
The initial PIPE investment is structured as approximately $5 million of senior secured convertible notes. The notes carry a stated annual interest rate of 10% and have a 2031 maturity.
The final amount of capital available to Space-Eyes can depend on transaction conditions, investor participation, redemptions and other factors.
What Will Space-Eyes Get From the Transaction?
According to the transaction documents, the base transaction consideration is approximately $275 million in shares.
Certain existing Space-Eyes shareholders may also receive additional shares through an earn-out arrangement if specified future milestones are achieved.
The earn-out arrangement provides for up to 8 million additional shares.
This is important because the $275 million base transaction consideration and the $638 million pro forma equity valuation are different measures. The former relates to the transaction consideration, while the latter reflects the broader pro forma equity valuation under the stated assumptions.
Why Is the Merger Important for Space-Eyes?
The transaction could give Space-Eyes access to the public capital markets without following the traditional IPO route.
For a technology company working in defense and geospatial intelligence, additional capital can be important because developing and deploying these systems can require significant investment.
Space-Eyes plans to expand its technology from development and early deployments toward larger-scale commercial and government applications.
The company expects the transaction to support areas such as:
- Counter-drone technology
- AI-based data fusion
- Geospatial intelligence
- Maritime intelligence
- Defense and security systems
- Satellite-based intelligence
- Government and enterprise deployments
How Does Space-Eyes’ Counter-Drone Technology Work?
Counter-drone technology has become increasingly important as drones are being used in both commercial and military environments.
A basic counter-drone system may use one type of sensor to detect an aircraft. Space-Eyes is taking a broader approach by combining information from multiple sensors.
For example, a system could receive information from:
- Radar
- Radio-frequency sensors
- Electro-optical cameras
- Infrared sensors
- Satellites
- Other available data sources
Space-Eyes’ CATE AI platform is designed to fuse these different inputs.
The benefit of this approach is that an operator does not necessarily have to examine each sensor separately. Instead, the system can attempt to create a more complete operational picture from multiple data sources.
The company also describes its technology as sensor-agnostic, meaning that it is designed to work with different sensor systems rather than depending on a single proprietary hardware platform.
Space-Eyes Is More Than a Counter-Drone Company
Although counter-drone technology is one of the company’s most important areas, Space-Eyes is positioning itself as a broader AI and geospatial intelligence platform.
Its potential applications include defense, maritime monitoring, security and disaster-related intelligence.
Maritime Intelligence
Space-Eyes’ SeaWatch platform is designed for maritime intelligence and vessel monitoring.
It can combine information from satellites and other sources to provide users with greater visibility into activity at sea.
This type of technology can have applications in areas such as maritime security, vessel tracking and situational awareness.
Counter-Drone Systems
The company’s Morpheus technology is associated with counter-unmanned aerial systems.
The objective is to provide capabilities for detecting, tracking and identifying drones and supporting a broader response architecture.
Disaster and Environmental Monitoring
Geospatial intelligence can also be used outside traditional defense applications.
Satellite and sensor data can potentially help organizations monitor situations such as wildfires and other large-scale events.
Defense and Security
Defense and security remain important parts of Space-Eyes’ business strategy.
The company is targeting applications where real-time information from multiple sensors can help governments and organizations understand activity around sensitive locations and infrastructure.
Space-Eyes’ Growth Strategy
One of the biggest reasons this transaction is important is Space-Eyes’ plan to scale its business.
According to Reuters, the company has been operating with a relatively small revenue base while pursuing larger government and corporate opportunities.
Reuters reported that Space-Eyes was in discussions regarding potential contracts worth approximately $35 million, although these were opportunities under negotiation rather than completed revenue.
This distinction is important.
A potential contract should not be treated as current revenue until it is actually awarded, executed and recognized under the applicable accounting rules.
The company plans to work with third-party manufacturers and other partners to expand the deployment of its technology.
Potential Acquisition of KMS Solutions
Space-Eyes has also announced an exclusive option related to the potential acquisition of KMS Solutions.
KMS Solutions provides engineering and technical services, including work connected with the U.S. Navy.
The potential combination could bring together KMS Solutions’ defense engineering capabilities with Space-Eyes’ AI and geospatial technology.
However, this should currently be viewed separately from the McKinley merger because the KMS transaction involves an option and remains subject to its own conditions.
What Happens to McKinley After the Merger?
If the transaction closes as currently planned, McKinley will effectively transform from a SPAC into the public-market vehicle for Space-Eyes.
The combined company is expected to use the Space-Eyes, Inc. name.
The proposed Nasdaq ticker is CUAS, which reflects the company’s focus on Counter-Unmanned Aerial Systems.
The completion of the transaction will depend on the satisfaction of the conditions contained in the business combination agreement.
What Are the Main Opportunities?
The transaction gives Space-Eyes exposure to several technology markets that are attracting significant attention.
AI and Defense
AI is increasingly being used to process large volumes of sensor and intelligence data. Space-Eyes is attempting to position its technology at the intersection of AI, defense and geospatial intelligence.
Counter-Drone Market
The rapid development and deployment of drones has increased the need for systems that can detect and track unauthorized aerial objects.
Multi-Sensor Data Fusion
Instead of relying on a single data source, Space-Eyes’ platform is designed to combine information from different sensors.
Public-Market Access
A successful merger could give Space-Eyes access to public capital markets and potentially make future fundraising and strategic transactions easier.
What Are the Key Things to Watch?
There are several important factors investors and readers should watch as the transaction moves toward closing.
First, the merger is not yet completed. The companies still need to satisfy the required closing conditions.
Second, the final amount of capital raised can differ from the headline figures. SPAC transactions can be affected by shareholder redemptions and financing conditions.
Third, Space-Eyes’ future growth depends on converting opportunities into actual contracts and revenue.
Fourth, the company’s technology will need to move from development and early deployments toward larger-scale commercial and government deployments.
Finally, investors will need to evaluate the company’s financial performance after it becomes public rather than relying only on the transaction valuation.
Source: Mckinley news, sec
