Merlin to go public via $800M SPAC deal with Inflection Point’s BACQ

Bleichroeder Acquisition Corp. I is set to merge with Merlin, a company valued at $800 million, with a significant PIPE investment of over $125 million, including $78 million already funded, and the transaction expected to close in early 2026.

Merlin focuses on developing aircraft-agnostic AI flight systems for both defense and civil aviation, with major contracts including a $105 million project with USSOCOM and another with the U.S. Air Force for KC-135 integration.

The SPAC sponsor, Inflection Point, has a history of investing in successful companies, and the current merger could generate up to $257 million in additional funds, which will support technology development and other growth initiatives for Merlin.

Recommendation Rating: Strong Buy

Bleichroeder Acquisition Corp. I (NASDAQ: BACQ) has entered into a definitive agreement to merge with Merlin, a company valued at $800 million prior to the infusion of capital. The deal has secured over $125 million in Private Investment in Public Equity (PIPE), with $78 million already funded upon signing the agreement. The transaction is projected to close in early 2026.

Merlin specializes in creating aircraft-agnostic artificial intelligence flight systems tailored for both defense and civil aviation sectors. The company holds significant contracts, including a $105 million project with USSOCOM for the C-130J aircraft and another with the United States Air Force focused on KC-135 integration.

The SPAC sponsor, Inflection Point, is notable for previously investing in companies like Intuitive Machines (ticker: LUNR) and USA Rare Earth. The current agreement has the potential to generate up to $257 million in additional funds, contingent on SPAC redemptions. These resources are intended to enhance technology development, facilitate customer deliveries, support potential acquisitions, and foster talent acquisition within Merlin.

Source: Press Release.