Merlin To Go Public Via SPAC Deal With Bleichroeder Acquisition Corp. I To Accelerate AI-Powered Autonomous Flight For Defense

• Transaction values Merlin at $800 million pre-money and is designed to drive rapid capability delivery for customers as well as bolster strategic acquisition pipeline
• Over $125 million of capital committed, anchored by Inflection Point fund, existing Merlin investors including Baillie Gifford, and several new institutional investors
• The transaction positions Merlin to scale critical AI-enabled autonomous flight capabilities while continuing to support national security in a rapidly evolving defense landscape
• Inflection Point's track record of closing successful SPAC deals includes Intuitive Machines and USA Rare Earth

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 (Inflection Point), 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.

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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.