SKYX Platforms (SKYX) M&A announcement summary

Deal rationale and strategic fit

• Merger aims to revolutionize the smart home, builder, and hotel markets by combining advanced plug-and-play AI technologies for wall and ceiling outlets, eliminating complex wiring and installation barriers.

• The combined entity will offer an all-in-one, safe, plug-and-play smart home solution, targeting both new construction and retrofit markets.

• Expands reach into builder channels, leveraging Deako’s relationships with over 50 U.S. builders and SKYX’s hotel and smart city projects, creating complementary distribution channels.

• Combines complementary product portfolios, maximizing performance and offering a complete solution for builders.

• Both companies' platforms are seen as disruptive, validated by industry leaders and investors.

Financial terms and conditions

• SKYX will issue 25,000,000 shares (18.46% of the company) to Deako stakeholders, subject to a one-year lockup and 9-12 month leak-out agreement.

• Post-merger, SKYX shareholders will own 84.4%, and Deako shareholders and lender will own 15.6%.

• SKYX will pay Deako's lender $4 million at closing and issue an $8.5 million note, with $2.25 million due in Q1 2027 and $6.25 million in Q4 2027.

Synergies and expected cost savings

• Significant cost savings expected from consolidation of employees, software, accounting, administration, and sourcing.

• SKU count for Deako's builder market offerings will increase fivefold, leveraging existing sales teams without expanding headcount.

• Efficiency optimization and expanded recurring revenue opportunities from product interchangeability, AI services, and subscriptions.