Merlin to Go Public in $800 Million Deal with Inflection Point-led SPAC

Merlin, a forefront developer in assured, autonomous flight technology for defense applications, has announced a definitive business combination agreement with Bleichroeder Acquisition Corp. I, led by Inflection Point Asset Management. This strategic move, valuing Merlin at $800 million pre-money, is poised to close in early 2026, pending customary approvals. The transaction underscores Merlin's pivotal role in advancing AI in aviation, with over $125 million in committed PIPE capital to fuel its growth trajectory.

The collaboration aims to accelerate Merlin's mission to deliver the first defense-grade autonomy stack, enhancing national security through innovative AI applications in aviation. Merlin's technology, already implemented on five dissimilar aircraft types, is set for expansion across a broader range of platforms, from large aircraft like the C-130J and KC-135 to small handheld drones. This expansion is supported by a $105 million contract with USSOCOM and a partnership with the USAF, highlighting the technology's critical importance to national defense.

Merlin's advancements in civil certification and partnerships with industry giants such as Northrop Grumman and Honeywell further solidify its position as a leader in autonomous flight technology. The company's certification flight testing in New Zealand and its collaboration with the US Federal Aviation Administration and NZ Civil Aviation Authority are testament to its commitment to safety and innovation.

The transaction is expected to provide Merlin with at least $128 million in gross proceeds from the committed PIPE, with potential additional funds to support technology development, customer capability expansion, and strategic acquisitions. This financial backing, coupled with the expertise of Inflection Point, positions Merlin to redefine the future of aerospace and defense, both militarily and commercially.

Advisors including TD Cowen, Cantor Fitzgerald & Co., and Latham & Watkins LLP are facilitating the transaction, ensuring a smooth transition to the public market. This move not only highlights Merlin's technological prowess but also its potential to become a national asset in the aerospace and defense sectors.