- Space-Eyes has secured an exclusive KMS Solutions acquisition option
- KMS brings decades of Navy engineering experience
- The deal hinges on Space-Eyes’ McKinley SPAC merger
Space-Eyes has signed a purchase option agreement granting it the exclusive right to acquire all of KMS Solutions, a U.S. Navy engineering services provider, as part of an effort to expand its defense and maritime technology capabilities.
The company said Wednesday the move would combine its artificial intelligence and geospatial technology with KMS’ engineering, life cycle support and Navy mission expertise.
What Is KMS Solutions?
Founded in 2005, KMS Solutions is a systems engineering services company that specializes in supporting U.S. Navy in-service and developmental systems, components and payloads. The company, which is ISO 9001:2015-certified, provides cradle-to-grave engineering and life cycle support for the Navy’s submarine force.
What Would the Deal Add to Space-Eyes’ Capabilities?
Space-Eyes said KMS’ engineering background and knowledge of Navy systems and acquisition processes would complement its own portfolio of AI, geospatial intelligence, sensor integration and counter-drone technologies.
The combination could support opportunities across maritime awareness, force protection and other defense missions while KMS continues to serve its existing customers. Space-Eyes and KMS have already teamed to receive a participant basic agreement to join the Next Generation Undersea Security Initiative consortium, a Strategic Systems Program effort focused on submersible operations.
The potential acquisition follows Space-Eyes’ recent expansion of its Miami headquarters and Washington, D.C. presence. The company is also preparing to launch a radio frequency satellite constellation intended to widen coverage for its geospatial and counter-drone products.
What Are the Terms of the Option Agreement?
Space-Eyes may exercise the option to acquire KMS through Dec. 31. The option is contingent on the completion of Space-Eyes’ proposed merger with McKinley Acquisition, a special purpose acquisition company, and the effectiveness of a related registration statement.
In July, Space-Eyes and McKinley signed a definitive business combination agreement. The deal, approved by both companies’ boards, is expected to close in the fourth quarter of 2026 pending regulatory and shareholder approval. The combined company would be named Space-Eyes and would seek to list on Nasdaq under the ticker symbol CUAS.
The financial terms of the KMS option agreement were not disclosed, and KMS will continue normal operations while the parties evaluate the transaction.
What Did Space-Eyes & KMS Officials Say About the Transaction?
Jatin Bains, CEO and founder of Space-Eyes, said the company has spent several years developing an AI-driven technology platform and views KMS as bringing complementary Navy engineering experience, mission knowledge and life cycle-support expertise.
“We believe the combination with KMS will create a stronger defense technology platform bringing together innovative software and AI capabilities with the engineering discipline and operational understanding required to address real-world defense requirements,” Bains said. “Importantly, KMS will give us experienced people who understand the Navy environment and can help us identify where our technologies may solve genuine mission problems and how those opportunities should appropriately be pursued.”
KMS CEO JP Heatherington said the company has built its reputation on understanding customer missions and delivering engineering work with consistency and technical rigor, and that he sees potential in pairing that experience with Space-Eyes’ technology capabilities.
“The opportunity is not about circumventing established acquisition processes; it is about bringing together complementary capabilities that can help us identify and solve increasingly complex mission challenges for our customers,” Heatherington added.
