AI flight software maker Merlin set to go public - Breaking Defense

WASHINGTON — Merlin is set to go public in a deal that values the company at $800 million and positions it to become one of the first publicly traded prime contractors on the market specializing in autonomous flight software, the company announced Thursday.

The deal involves a merger with the publicly traded Bleichroeder Acquisition Corp., a “special purpose acquisition company” backed by Inflection Point Asset Management, which specializes in taking companies public. Bleichroeder will raise funds through an initial public offering (IPO) and take Merlin public by using that money to acquire the company.

The transaction is slated to close in early 2026, subject to regulatory approval, the company said in a news release. Inflection Point and other investors have committed $125 million in capital, $78 million of which was funded when the companies signed a business combination agreement.

“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. “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.”

Merlin is developing what it calls the “Merlin Pilot,” an autonomous AI pilot that the company says will be able to operate defense and civil planes, rotorcraft and drones. The company has scored multiple contracts with the Defense Department to integrate and test aspects of the Merlin Pilot onboard aircraft like the C-130J and KC-135 tanker, where the US military customer will evaluate whether the technology can help reduce crew workload.

Merlin has also formed a partnership with Northrop Grumman to test the Merlin Pilot onboard the Model 437 Vanguard aircraft built by Northrop subsidiary Scaled Composites, through a program known as Beacon.