Merlin, a leading developer of assured, autonomous flight technology for defense customers, and Bleichroeder Acquisition Corp. I (BAC), a SPAC led and backed by the management team of Inflection Point Asset Management, which will be renamed Inflection Point Acquisition Corp IV (Nasdaq: BACQ), announced today that they have entered into a definitive business combination agreement (BCA). The proposed transaction is expected to close in early 2026, subject to customary closing conditions, including regulatory and shareholder approval. As the leading defense prime contractor for AI in aviation, the deal values Merlin at $800 million pre-money, and has over $125 million in committed PIPE capital, $78 million of which has been funded at the BCA signing to further accelerate growth.

Merlin is a leader in developing aircraft-agnostic autonomy for national security applications, with a dual-track civil certification program that has the company on pace to be the first to certify an AI skill on an aircraft. In its march towards delivering assured, embodied AI, Merlin is working hand in hand with customers so that the Merlin Pilot is appropriately scoped in relation to contracts, certification packages, and customer rules. Implemented today on five dissimilar aircraft types, the company plans to continue to expand the Merlin Pilot’s use across large aircraft (like the current C-130J and KC-135 programs), down to small handheld drones leveraging one unified autonomy system. Merlin’s engineering resources will be bolstered through this transaction with deeper alignment towards near-term product roadmaps. Recent technology, certification, and partnership milestones for Merlin include:

• A $105 million contract with the United States Special Operations Command (USSOCOM) to integrate the Merlin Pilot onto the C-130J and an agreement with the United States Air Force (USAF) to do the same for the KC-135.
• Approved civil certification basis, and an active autonomy certification program with the US Federal Aviation Administration and NZ Civil Aviation Authority.
• A partnership with Northrop Grumman to test, validate, and refine Merlin’s system on the Scaled Composites-built Model 437 Vanguard as part of the Beacon autonomous testbed.
• Ongoing certification flight testing of its takeoff-to-touchdown autonomy platform in New Zealand.
• Partnership with Honeywell to bring autonomy to a wide variety of aircraft, including military fleets.
• Backed by some of the world’s top investors, including Baille Gifford, First Round Capital, and Snowpoint Ventures.

“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, Merlin’s CEO and founder. “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. 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.”

Inflection Point is an experienced SPAC sponsor that seeks to identify, take public, and scale high-impact technology companies. Its prior transactions include Intuitive Machines (Nasdaq: LUNR) and USA Rare Earth (Nasdaq: USAR).

“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 Inflection Point’s Michael Blitzer. “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.”

Transaction Overview
The business combination is expected to deliver gross proceeds of at least $128 million from the committed PIPE, with up to $257 million additional proceeds depending on redemptions. These proceeds will be used to accelerate Merlin’s technology development, expand the delivery of its capabilities to customers, enable strategic acquisitions, and ensure top talent across areas including avionics and machine learning continue joining Merlin.

The Boards of Directors of both Merlin and Bleichroeder have unanimously approved the proposed transaction. The deal is expected to close in early 2026, subject to customary closing conditions, including approval by Bleichroeder shareholders and regulatory review.

Advisors
TD Cowen is acting as financial and capital markets advisor to Merlin. Cantor Fitzgerald & Co. and Cohen & Company Capital Markets, a division of Cohen & Company Securities, LLC, are serving as financial and capital markets advisors to BAC. Latham & Watkins LLP is serving as legal advisor to Merlin. White & Case LLP is serving as transaction counsel to BAC and Ellenoff Grossman & Schole LLP is serving as general counsel to BAC. Greenberg Traurig is serving as legal advisor to TD Cowen.

About Merlin
Merlin is the leading U.S.-based developer of cost-effective, takeoff-to-touchdown autonomy for both legacy and next-generation airborne systems. Our aircraft-agnostic, AI-powered software is purpose-built for military and civil programs, and is powering an expanding range of missions and aircraft, proven through hundreds of autonomous flights from test facilities across the globe. With $100M+ total in awarded contracts from military customers, Merlin is helping to solve national security challenges through safe, reliable autonomy. To learn more, visit www.merlinlabs.com or follow us on X @merlinaero.

About BAC
Bleichroeder Acquisition Corp. I, to be renamed Inflection Point Acquisition Corp IV, is a blank check company formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses.

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