Cyber defense technology company RedLattice plans to merge and go public with SPAC Bold Eagle (BEAG.US), with a valuation of $1.25 billion.

According to Golden Ten Data APP, sources have revealed that RedLattice, a cybersecurity technology company backed by a private equity firm, will go public through a merger with blank-check company (SPAC) Bold Eagle Acquisition Corp. (BEAG.US). Sources said the deal values RedLattice at approximately $1.25 billion (including debt), and the transaction could be announced as early as Monday. According to the sources, the deal is expected to raise as much as $610 million in total funding for RedLattice, including $335 million committed by new and existing investors, as well as up to $275 million from Bold Eagle’s trust account.

Private equity firm AE Industrial Partners, which focuses on the aerospace and defense sector, acquired a majority stake in RedLattice in 2023. Upon completion of the transaction, AE Industrial Partners will become the company’s largest shareholder, while RedLattice CEO Andy Boyd will lead the merged entity. Andy Boyd previously served as head of the CIA’s Cyber Intelligence Center.

Headquartered in Chantilly, Virginia, RedLattice is a global defense technology company that provides services to intelligence agencies, law enforcement, and military organizations. According to information on the company’s website, RedLattice offers cyber intelligence tools used by the US government and its allies.

Reportedly, in 2024, AE Industrial Partners acquired Israeli security company Paragon in a deal worth up to $900 million, with plans to merge it with RedLattice. Paragon was co-founded in 2019 by former Israeli Prime Minister Ehud Barak and offers tools designed to help law enforcement and intelligence agencies secretly access messages sent via encrypted services on mobile phones. In 2024, US Immigration and Customs Enforcement entered into a $2 million deal to purchase Paragon’s related tools. The deal was previously halted by the Biden administration, but was relaunched last year under the Trump administration.

In 2024, Bold Eagle raised $250 million through an Initial Public Offering (IPO) and is operated by CEO Eli Baker along with co-chairmen Harry Sloan and Jeff Sagansky. Harry Sloan and Jeff Sagansky previously led a Special Purpose Acquisition Company (SPAC) that merged with DraftKings in 2019.

According to data compiled by SPAC Research, so far this year, SPAC sponsors have completed 34 merger transactions, a sharp decline from the peak in 2021, when about 200 blank-check companies completed deals. SPAC Research data shows that the Eagle Equity Partners team has completed 8 SPAC transactions, most of which saw positive post-merger stock performance. DraftKings (DKNG.US) and Target Hospitality (TH.US) are among the top performers, with both companies’ stock prices more than doubling from their IPO price of $10. However, the market capitalization of Ginkgo Bioworks (DNA.US) has shrunk by more than 95%; and Skillz, after being renamed and reorganized as Firy (FIRY.US), also resulted in a similar magnitude of losses for long-term holders.