Cybersecurity technology company RedLattice plans to merge with SPAC Bold Eagle (BEAG.US) to go public, valued at $1.25 billion.

Cybersecurity defense technology company RedLattice, backed by a private equity firm, will go public through a merger with blank-check company (SPAC) 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 could be announced 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, and 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. Upon completion of the transaction, AE Industrial Partners will become the company's largest shareholder, and RedLattice CEO Andy Boyd will lead the combined company. 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 serves intelligence agencies, law enforcement, and military organizations. According to the company's website, RedLattice provides cyber intelligence tools used by the U.S. government and its allies. In 2024, AE Industrial Partners reportedly acquired Israeli security company Paragon for a deal valued at up to $900 million and planned to merge it with RedLattice. Paragon was co-founded in 2019 by former Israeli Prime Minister Ehud Barak and 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 revived last year under the Trump administration. Bold Eagle raised $250 million through an initial public offering (IPO) in 2024 and 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 of activity in 2021, when about 200 blank-check companies completed deals. Data from SPAC Research shows that the Eagle Equity Partners team has completed 8 SPAC deals, most of which have seen positive share price performance after completion. 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%; and Skillz, after changing its name and restructuring as Firy (FIRY.US), has also inflicted similar losses on long-term holders.