South Florida’s SKYX completes Deako merger to expand smart-home business

SKYX Platforms completed its merger with smart-home lighting company Deako on October 13, bringing an established network of home-builder customers into the South Florida technology business. The company announced the closing October 14 after signing the merger agreement in September.

The transaction makes Deako a wholly owned subsidiary, according to SKYX’s SEC filing. SKYX lists its principal executive offices in Pompano Beach. Its Nasdaq-listed business develops plug-and-play electrical and smart-home systems for residential and commercial buildings.

The deal combines two parts of the connected-home market. SKYX’s technology covers ceiling connections and other electrical products, while Deako supplies modular wall switches and lighting controls. SKYX says the combination will broaden the range of products it can offer builders, homeowners and hotel operators.

Deako’s product platform allows users to change compatible switches after a backplate has been installed. Its range includes smart switches, dimmers, plugs and simpler controls for motion sensing, timers and ceiling fans. The modular design gives customers a way to adjust lighting controls as their needs change.

The acquired company’s builder relationships are central to the transaction. In its closing announcement, SKYX says Deako supplies more than 50 U.S. home builders, including D.R. Horton and Toll Brothers. It also reports that Deako shipped more than 32 million units over time and generated more than $26 million in revenue in 2025.

For SKYX, those relationships provide a distribution channel for a wider electrical-product offering. For builders, the combined business brings wall controls and ceiling connections into a single supplier group. The business case centers on expanding products within homes and projects already served by Deako.

The transaction has a substantial equity component. SKYX issued 25 million common shares at closing, leaving its existing shareholders with approximately 84.4% of the company. The remaining approximately 15.6% is associated with the Deako side of the transaction, with shares held in escrow for its shareholders and certain senior lenders.

Those shares have an initial 12-month lock-up. Transfer restrictions then lift on 25% portions at 12, 15, 18 and 21 months after closing, the filing says. The structure spreads the release of the merger shares over several quarters.

SKYX also paid Deako’s senior lenders $4 million in cash on Deako’s behalf. Half was paid when the agreement was signed September 9 and half at closing. An additional $8.5 million senior secured promissory note carries 12% annual interest, with $2.25 million due 120 days after closing and the balance due on the first anniversary.

Management expects the combination to reduce overlapping annual expenses by more than $6 million. SKYX also estimates a combined pipeline exceeding four million units. These are company projections; the operating milestones now are integrating the businesses, converting the pipeline into shipments and bringing more products into the builder channel.

Deako founder and CEO Derek Richardson brings a business built around modular lighting to the combined group. SKYX founder and executive chairman Rani Kohen described the transaction in the announcement as a step toward a broader smart-home offering. The closing moves that strategy into execution, with integration and the first debt repayment ahead.