REDLattice to Go Public Via $1.25B SPAC Merger

Defense technology firm REDLattice is set to enter the public markets through a business combination with special purpose acquisition company Bold Eagle Acquisition Corp. The transaction values REDLattice at a pre-money enterprise valuation of $1.25 billion. This strategic move is anticipated to conclude by the end of 2026, with the combined entity expected to list on the Nasdaq under the ticker symbol REDL.

The proposed merger is projected to inject up to $610 million in gross proceeds into REDLattice. This funding comprises a significant $335 million in committed capital from a mix of new and existing institutional investors, alongside up to $275 million from Bold Eagle's trust account, contingent on minimal shareholder redemptions. This influx of capital is earmarked for crucial strategic initiatives, including the refinancing of existing debt, settling the final cash earnout payment for the acquisition of Paragon Solutions, and bolstering working capital to fuel organic expansion, product development, and potential future acquisitions.

The committed financing package is robust, featuring $275 million in convertible notes anchored by Loomis Sayles. These notes carry a 4% coupon and a fixed conversion price of $12.50. Additionally, a $60 million common stock PIPE (Private Investment in Public Equity) is being led by affiliates of existing investors AE Industrial Partners and Eagle Equity Partners, with shares priced at $10 each. This structure underscores strong support from key stakeholders.

Founded in 2012, REDLattice has carved a niche by providing advanced lawful intercept, vulnerability research, and intelligence acquisition technologies. Its client base is exclusively composed of U.S. and allied nation-state and federal government agencies, serving over 100 customers across 23 countries. The company's financial performance reflects its strong market position, with revenues reaching $267 million for the twelve months ending June 30, 2026, representing a 29% year-over-year increase. Furthermore, REDLattice reported a substantial contracted backlog of $200 million and an active pipeline valued at $1.5 billion as of the same date, indicating significant future revenue potential.

The leadership team, including CEO Andy Boyd, a former Director at the CIA’s Center for Cyber Intelligence, will continue to guide the company post-transaction. Existing REDLattice shareholders are committed to rolling over 100% of their equity, and AE Industrial Partners is set to remain the largest shareholder in the combined entity. This continuity in leadership and ownership is expected to ensure a smooth transition and sustained strategic focus.

The defense technology sector, particularly in cyber intelligence and national security, is experiencing heightened demand driven by escalating geopolitical tensions and the rapid advancement of cyber warfare capabilities. REDLattice's focus on mission-critical technologies positions it favorably within this expanding market, estimated to grow significantly in the coming years. The company's ability to secure substantial funding and maintain strong customer relationships highlights its competitive advantage in providing essential capabilities to government entities.