Merlin, a leading developer of assured autonomous flight technology for defense customers, has announced that it has entered into a definitive business combination agreement with Bleichroeder Acquisition Corp. I (BAC), a special purpose acquisition company (SPAC) led by the management team of Inflection Point Asset Management. Upon completion of the transaction, BAC will be renamed Inflection Point Acquisition Corp IV and trade on Nasdaq under the ticker symbol “BACQ.”
The agreement values Merlin at $800 million on a pre-money basis and includes over $125 million in committed private investment in public equity (PIPE) financing. Of this amount, $78 million has already been funded at the signing of the business combination agreement to support Merlin’s immediate growth objectives. The transaction is expected to close in early 2026, subject to customary conditions including shareholder and regulatory approvals.
Merlin is widely recognized as a top defense prime contractor specializing in artificial intelligence for aviation. The company is pioneering aircraft-agnostic autonomy solutions tailored for national security applications while pursuing a civil certification program that positions it to become the first to certify an AI skill on an aircraft. Currently, the Merlin Pilot system is deployed on five different aircraft types, ranging from large military platforms such as the C-130J and KC-135 to smaller unmanned aerial systems. The company aims to expand its unified autonomy technology across a broad range of aircraft sizes and types.
Recent achievements highlight Merlin’s growing momentum in the sector. These include securing a $105 million contract with the U.S. Special Operations Command to integrate the Merlin Pilot onto the C-130J, a separate agreement with the U.S. Air Force for KC-135 integration, and the approval of its civil certification basis by the U.S. Federal Aviation Administration and the New Zealand Civil Aviation Authority. Additionally, Merlin has formed strategic partnerships with major industry players such as Northrop Grumman—testing its autonomy systems on the Vanguard Model 437—and Honeywell, to extend autonomy capabilities across various military and civilian fleets.
The company is backed by notable global investors including Baillie Gifford, First Round Capital, and Snowpoint Ventures. Through this public listing, Merlin intends to accelerate product development, expand its customer base, pursue strategic acquisitions, and strengthen its engineering teams in avionics and machine learning.
Inflection Point, the SPAC partner, has a track record of identifying and taking high-impact technology companies public, with previous transactions including Intuitive Machines and USA Rare Earth. The firm has expressed confidence that Merlin is well-positioned to become a critical national asset in aerospace and defense, with significant near-term revenue growth potential.
Proceeds from the transaction could reach up to $385 million, depending on redemption levels. The funds will be allocated to advancing Merlin’s technology roadmap, scaling delivery capabilities, and securing top-tier technical talent. Both companies’ boards have unanimously approved the merger, marking a significant milestone in Merlin’s journey toward delivering the operating system of record for defense-grade autonomous aviation.
Summary
Merlin, a leader in autonomous flight technology for defense, is merging with Bleichroeder Acquisition Corp. I (BAC), a SPAC backed by Inflection Point Asset Management.
- After the merger, BAC will be renamed Inflection Point Acquisition Corp IV and listed on Nasdaq as BACQ.
- The deal values Merlin at $800 million and includes $125 million in committed funding, with $78 million already received.
- Expected to close in early 2026, pending approvals.
- Merlin develops AI-powered aircraft autonomy for both military and civil use, aiming to be the first to certify AI on an aircraft.
- Its Merlin Pilot system is already used on five aircraft types, from large military planes (C-130J, KC-135) to drones.
- Key milestones:
- $105M contract with U.S. Special Operations Command.
- Partnership with U.S. Air Force, Northrop Grumman, and Honeywell.
- Civil certification approval in U.S. and New Zealand.
- Backed by major investors like Baillie Gifford, First Round Capital, Snowpoint Ventures.
- Funds from the deal will boost technology development, customer expansion, acquisitions, and hiring top engineering talent.
About Merlin
Merlin is a prominent U.S.-headquartered innovator specializing in affordable, fully autonomous flight technology that covers the entire journey—from takeoff to landing—across both existing and future aircraft platforms. Its AI-driven, aircraft-independent software is specifically engineered to support a broad range of defense and civilian applications. The company’s solutions have been successfully integrated into multiple mission profiles and aircraft types, with performance validated through hundreds of autonomous flights conducted at testing sites worldwide. Backed by more than $100 million in awarded military contracts, Merlin is actively contributing to national security by delivering safe, dependable, and advanced autonomy for airborne systems.
About BAC
Bleichroeder Acquisition Corp. I — soon to be renamed Inflection Point Acquisition Corp IV — is a special purpose acquisition company (SPAC), also known as a blank check company. It was established with the primary goal of identifying and executing strategic transactions such as mergers, amalgamations, share exchanges, asset purchases, equity acquisitions, reorganizations, or other similar business combinations. The company’s mission is to merge with or acquire one or more businesses, enabling them to become publicly traded or expand their market presence through this structured investment vehicle.
