Eric Trump-Backed Space-Eyes to Go Public in $638 Million SPAC Deal

A Family Connection Reaches Orbit

Space-Eyes, a California-based defense technology company focused on high-altitude intelligence, surveillance, and reconnaissance, is preparing to go public through a merger with a special purpose acquisition company (SPAC), according to two people familiar with the transaction. The deal, which values the combined entity at approximately $638 million, is expected to be announced as early as this week, the sources said, speaking on condition of anonymity because the terms are not yet public.

The company’s investor roster includes Eric Trump, the son of former President Donald Trump, who took a stake in 2023 through his family office. While the exact size of his holding was not disclosed, his involvement has drawn renewed attention to the intersection of defense contracting, private capital, and politically connected investing. Space-Eyes has not commented on the reported valuation, and the SPAC sponsor also declined to respond to questions.

What Space-Eyes Actually Does

Founded in 2019 by former aerospace engineers and ex-military intelligence officers, Space-Eyes operates a fleet of stratospheric balloons and high-altitude unmanned platforms equipped with advanced optical and radar sensors. Unlike satellites, which orbit at hundreds of miles above Earth, Space-Eyes systems loiter at altitudes of 60,000 to 90,000 feet, providing persistent, continuous coverage of a target area for weeks at a time. The company says its technology can track moving vehicles, monitor maritime traffic, and detect changes on the ground with resolution previously available only from low-orbit satellites — but at a fraction of the cost and with far greater flexibility.

The company has positioned itself as a lower-cost complement to satellite constellations, particularly for military customers that need to keep an eye on a specific region without waiting for a satellite to pass overhead. It has already secured contracts with the U.S. Department of Defense and allied governments, according to public records and previous company statements. Industry analysts note that stratospheric platforms have become an increasingly attractive niche as defense budgets shift toward cheaper, rapidly deployable intelligence assets.

The SPAC Path to Public Markets

A SPAC, also known as a blank-check company, is a shell firm that raises money through an initial public offering with the sole purpose of acquiring a private business. The target company merges into the SPAC and assumes its stock exchange listing, bypassing the traditional IPO process. While SPACs boomed in 2020 and 2021 — when hundreds of startups, many unprofitable, rode the wave to public markets — the vehicle fell out of favor after a wave of post-merger collapses and regulatory scrutiny. Today, only a fraction of announced SPAC deals are completed, and those that do reach closing often trade well below their listing prices.

Space-Eyes’ reported $638 million enterprise value is modest by historical SPAC standards, reflecting both the company’s early stage and the more disciplined market environment. The deal structure is said to include a minimum cash condition, protecting the company against redemptions by SPAC shareholders who choose to take their money back instead of staying invested. This kind of provision has become standard in recent deals as investors have grown wary of overhyped targets with no revenue.

The Eric Trump Factor

Eric Trump’s investment in Space-Eyes was first reported in early 2024, when the company announced a round of private funding that included his family office. At the time, Space-Eyes said the funding would accelerate development of its next-generation sensors and support expansion into new markets such as wildfire detection and border surveillance. Trump did not take a board seat, and the company emphasized that his role was purely financial.

Still, the connection has raised questions about potential conflicts, particularly if the U.S. government expands its use of Space-Eyes services. Government ethics rules generally do not restrict the business activities of presidential family members, but procurement decisions involving companies with political ties have historically drawn scrutiny. A spokesperson for Eric Trump did not respond to a request for comment for this article.

Defense industry experts caution that political connections rarely guarantee contracts, as procurement is heavily regulated and subject to competitive bidding. However, having a high-profile investor can open doors and generate visibility that smaller defense startups might otherwise struggle to obtain.

Market Outlook and Competitive Landscape

Space-Eyes occupies a crowded field. Established defense primes like Raytheon and Northrop Grumman have experimented with high-altitude balloons and solar-powered drones for decades. Meanwhile, newer entrants such as Sierra Space’s stratospheric systems and the British firm BAE Systems’ Phasa-35 have targeted the same operational niche. Satellites remain the dominant intelligence platform, and companies like SpaceX and Planet Labs have driven launch costs down dramatically, narrowing the price gap with stratospheric alternatives.

Space-Eyes argues that its advantage is persistence and revisit rate. A satellite can observe a site for only a few minutes per orbit; a balloon can hover over it for days. This makes the technology particularly suited for tracking illegal fishing fleets, monitoring disaster zones, or providing surveillance in denied environments where access is contested. The company has also developed machine-learning software that automatically detects anomalies in the imagery it collects, reducing the need for human analysts to review hours of footage.

Financially, the company is still in its growth phase. It reported revenue of approximately $12 million in 2024, according to an earlier investor presentation, but the vast majority came from government research-and-development contracts rather than recurring operational services. Analysts say the public offering will be a test of whether investors believe the company can convert its technological demonstrations into a scalable business.

What Comes Next

If the merger is completed, Space-Eyes will begin trading on the NASDAQ under a yet-to-be-determined ticker symbol. The deal’s closing is expected in the fourth quarter of 2025, pending approval by SPAC shareholders and regulatory review. The newly public company is expected to use the proceeds to fund the manufacture of additional flight systems, hire engineers, and pursue international sales in Europe and the Indo-Pacific region.

The company has also said it plans to launch a version of its sensor pod suitable for smaller drone platforms, which could open the door to civil applications such as pipeline monitoring and agricultural mapping. However, the immediate priority remains defense, as global security tensions have led many governments to increase spending on advanced ISR capabilities.

Investors should note that SPAC mergers carry inherent risks, including the possibility that target company projections prove overoptimistic. Space-Eyes has not yet filed a proxy statement with the Securities and Exchange Commission, and the final terms of the deal could change. The sources cautioned that negotiations are ongoing and could still fall apart.

For a company whose products watch from the edge of space, all eyes will be on whether it can deliver on the ground once the markets open their window.