Defense cyber intelligence company RedLattice to go public in $1.25B SPAC deal

Defense cyber intelligence firm RedLattice is set to go public in a $1.25 billion deal with special purpose acquisition company Bold Eagle Acquisition Corp. RedLattice, founded in 2012, provides lawful intercept and vulnerability research tools to intelligence, military, and law enforcement agencies. The merger values the company at $1.25 billion before any additional capital.

RedLattice has over 100 customers in 23 countries and reported $267 million in sales for the 12 months ending June 30, a 29% increase year-over-year. Upon completion of the transaction, presuming no shareholder redemptions, approximately $610 million could be raised. Approximately $335 million of the funding is already committed, consisting of $275 million in convertible notes with a 4% annual interest rate and $60 million in common stock purchases.

The remaining funds will come from Bold Eagle's trust account. RedLattice's CEO, Eli Baker, stated that the company is well-positioned to leverage the increasing demand for integrated technology capabilities within the national security sector. Existing RedLattice shareholders will roll 100% of their equity into the combined entity, while AE Industrial Partners will remain the largest shareholder.

Some of the SPAC funds will be used to refinance debt and pay the final Paragon earnout. Paragon Solutions, an Israeli spyware developer, was acquired by AE Industrial in December 2024 for $500 million and subsequently integrated into RedLattice. Graphite, Paragon's primary product, is a mobile spyware capable of infiltrating messaging apps on a target's phone.

Meta Platforms' WhatsApp acknowledged in January 2025 that approximately 90 of its users, including journalists and human rights workers, were targeted with Graphite, leading to subsequent confirmation of infections on European journalists' phones by the University of Toronto's Citizen Lab. The U.S. Immigration and Customs Enforcement lifted a Biden-era stop-work order on their $2 million contract with Paragon in August 2025.

The deal is anticipated to close at the end of the year, contingent upon a Bold Eagle shareholder vote and the Securities and Exchange Commission's declaration of the registration statement as effective. Following the merger, RedLattice's shares will be listed on Nasdaq under the ticker REDL.