RedLattice, a cyber defense technology company backed by private equity, is set to go public through a merger with blank check company Bold Eagle Acquisition Corp. (BEAG.US), according to people familiar with the matter.
The deal values RedLattice at approximately $1.25 billion including debt, and an announcement could come as early as Monday, the people said.
The transaction is expected to raise up to about $610 million in gross proceeds, including $335 million committed by new and existing investors, plus up to $275 million from Bold Eagle's trust account, the people said.
AE Industrial Partners, a private equity firm focused on aerospace and defense, acquired a majority stake in RedLattice in 2023.
Following the completion of the transaction, AE Industrial Partners will become the largest shareholder of the company, and RedLattice CEO Andy Boyd will lead the combined company.
Andy Boyd previously served as the head of the CIA's cyber intelligence center.
Headquartered in Chantilly, Virginia, RedLattice is a global defense technology company that serves intelligence agencies, law enforcement, and military organizations.
According to the company's website, RedLattice provides cyber intelligence tools that are used by the U.S. government and its allies.
In 2024, AE Industrial Partners reportedly acquired Israeli security company Paragon for a transaction valued at up to $900 million and planned to merge it with RedLattice.
Paragon, co-founded in 2019 by former Israeli Prime Minister Ehud Barak, provides tools designed to help law enforcement and intelligence agencies covertly access messages sent through encrypted services on mobile phones.
U.S. Immigration and Customs Enforcement reached a $2 million deal in 2024 to purchase Paragon's tools.
The deal was previously halted by the Biden administration but was restarted last year under the Trump administration.
Bold Eagle raised $250 million through an initial public offering (IPO) in 2024, and the company is led by CEO Eli Baker and co-chairmen Harry Sloan and Jeff Sagansky.
Harry Sloan and Jeff Sagansky previously led a special purpose acquisition company (SPAC) that completed a merger with DraftKings in 2019.
According to data compiled by SPAC Research, SPAC sponsors have completed 34 merger deals so far this year, a sharp decline from the peak activity in 2021.
At that time, about 200 blank check companies completed deals.
SPAC Research data shows that the Eagle Equity Partners team has completed 8 SPAC deals, most of which have delivered positive post-merger share price performance.
DraftKings (DKNG.US) and Target Hospitality (TH.US) are among the standout cases, with both companies' share prices more than doubling from their $10 IPO offering price.
However, Ginkgo Bioworks (DNA.US) has seen its market value shrink by more than 95%, while Skillz, after changing its name and restructuring as Firy (FIRY.US), has also caused long-term holders to suffer similar losses.