SKYX Platforms Corp. (NASDAQ: SKYX) has signed a merger agreement with Silicon Valley-backed smart home AI platform and intelligent lighting company Deako Inc., the companies announced. The combination will merge their plug-and-play technologies across ceiling outlets, wall outlets and wall switches, according to a press release detailing the deal.
Deako has shipped more than 32 million units over the past five years, generated more than $26 million in revenue in 2025 and supplies more than 50 U.S. builders. SKYX said the combination is expected to accelerate deployment of its technologies through Deako's builder footprint while creating opportunities for Deako products across SKYX hotel and development projects.
Under the agreement, SKYX will issue 25 million common shares as merger consideration, subject to a lockup and leak-out agreement. Current SKYX shareholders are expected to own 84.4% of the post-merger company, while Deako shareholders and its lender will collectively own 15.6%. SKYX will also pay Deako's lender $4 million at closing and issue an $8.5 million note, with $2.25 million due in the first quarter of 2027 and $6.25 million in the fourth quarter.
The combination will bring together more than 120 patents and pending applications and is expected to create cost-saving synergies and future recurring revenue opportunities from product upgrades, AI services, monitoring, subscriptions and licensing. For SKYX, the deal represents a significant expansion of its smart home and AI platform capabilities, leveraging Deako's established relationships with homebuilders to drive adoption of its technologies.
SKYX, which owns 60 lighting and home decor websites for both retail and commercial segments, has a series of advanced, safe, smart and AI platform technologies with over 100 U.S. and global patents and patent pending applications. The company's mission is to make homes and buildings become safe-advanced and smart as the new standard. The merger with Deako aligns with that mission by integrating intelligent lighting and smart home controls into a broader platform.
The deal is important for the smart home and building technology industry because it consolidates two players with complementary technologies and extensive intellectual property. By combining SKYX's plug-and-play ceiling and wall outlet technologies with Deako's intelligent lighting and switch products, the merged company could offer a more comprehensive solution for builders and developers looking to integrate smart features into new construction and renovations. The transaction also highlights the growing trend of AI and subscription-based services in the home automation market, as the combined company plans to generate recurring revenue from product upgrades, monitoring and licensing.
For investors, the merger's success will depend on the companies' ability to realize the anticipated synergies and capitalize on cross-selling opportunities. The lockup and leak-out agreement on the shares issued to Deako shareholders may help stabilize the stock post-merger. The full press release can be viewed at https://ibn.fm/OMnC3. The latest news and updates relating to SKYX are available in the company's newsroom at https://ibn.fm/SKYX.
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