Merlin has agreed to merge with Bleichroeder Acquisition Corp. I, a special purpose acquisition company backed by Inflection Point Asset Management, in a transaction that would take the autonomous flight technology company public.
In a joint release published Thursday, the companies said the boards of directors of Merlin and Bleichroeder have unanimously approved the deal, which is expected to close in early 2026, subject to Bleichroeder shareholders’ approval, regulatory review and other customary closing conditions.
The proposed deal values Merlin at $800 million pre-money. The business combination is expected to generate at least $128 million in gross proceeds from the committed private investment in public equity, with up to $257 million in additional proceeds.
Merlin will use the proceeds to accelerate technology development, drive strategic acquisitions, expand capability delivery and hire top talent in avionics, machine learning and other tech areas.
Scaling AI-Enabled Autonomous Flight Tech Capabilities While Advancing National Security
“We’re taking Merlin public to deliver the world’s first defense-grade autonomy stack and advance towards delivering the operating system of record for aircraft big and small,” said Matt George, founder and CEO of Merlin.
“Our national security represents the highest stake proving ground. Defense airframes log over four million flight-hours per year; AI that has earned trust there earns it anywhere. We believe our entrance into the public market will allow us to double down on our existing customers, expand the volume and types of platforms we support, and accelerate our revenue growth,” George noted. “Inflection Point is an ideal partner as we achieve this incredible milestone given their track record and shared commitment to coming to market with a valuation that we believe is both attractive and reasonable.”
Through the transaction, Merlin said it will boost its engineering resources in alignment with near-term product roadmaps.
“Our transaction with Merlin continues Inflection Point’s proven history of identifying leading companies in strategically important industries for the United States, with significant near-term revenue growth potential and a clear path to public market readiness,” said Michael Blitzer, chairman and CEO of Inflection Point. “We believe that Merlin is primed to become a national asset that will play a critical role in the future of aerospace and defense for both military and commercial applications.”
What Does Merlin Do?
Merlin develops aircraft-agnostic autonomy for national security applications. The company’s artificial intelligence-powered software is purpose-built for military and civil programs and is supporting an expanding range of missions and aircraft. It has over $100 million in awarded military contracts.
The company plans to continue expanding the use of Merlin Pilot across large aircraft and small handheld drones. It is integrating the Merlin Pilot onto the C-130J aircraft under a $105 million contract with U.S. Special Operations Command. Under a U.S. Air Force contract, the company is integrating the technology into KC-135 planes.
Merlin partnered with Northrop Grumman to test and refine its system on the Scaled Composites-built Model 437 Vanguard as part of the Beacon autonomous testbed. The company is also bringing autonomy to military fleets through its partnership with Honeywell.
