More than $125 million in committed capital has already been secured—including investments from Inflection Point, Baillie Gifford, and other institutional backers—with $78 million funded at signing of the business combination agreement. The transaction is expected to close in early 2026, pending shareholder and regulatory approval.

Matt George, Merlin’s CEO and founder, said: “We’re taking Merlin public to deliver the world’s first defence-grade autonomy stack and advance towards delivering the operating system of record for aircraft big and small.” He emphasised the company’s dedication to national security, noting that Merlin’s work with the U.S. military provides a proving ground for trusted AI solutions.

Expanding Autonomous Flight Capability Across Aircraft Types

Merlin is currently integrating its Merlin Pilot autonomy system across a variety of aircraft—from large military platforms like the C-130J and KC-135 to small unmanned systems—using a single, unified autonomy architecture. The company is simultaneously pursuing civil certification in the U.S. and New Zealand, positioning itself to become the first to certify an AI “skill” on an aircraft.

Key milestones to date include:

• A $105 million USSOCOM contract to fit the Merlin Pilot on the C-130J, with a similar agreement with the USAF for the KC-135.
• Approved certification basis with both the FAA and the Civil Aviation Authority of New Zealand.
• Partnership with Northrop Grumman for autonomous flight testing on the Vanguard Model 437 testbed.
• Collaboration with Honeywell to integrate autonomy across a range of fleet types.
• Active takeoff-to-touchdown autonomous flight testing underway in New Zealand.

Merlin’s investors include Baillie Gifford, First Round Capital and Snowpoint Ventures, among others.

Strategic SPAC Partnership

Inflection Point has a strong track record in the SPAC space, having completed transactions with Intuitive Machines and USA Rare Earth. Michael Blitzer of Inflection Point described Merlin as “a national asset” positioned to support both military and commercial aerospace sectors.

The proceeds from the SPAC transaction are intended to bolster Merlin’s engineering talent, accelerate product development, support strategic acquisitions and deliver advanced autonomy solutions to existing defence customers.

Transaction Summary

• Pre-money valuation: $800 million
• Committed capital to date: Over $125 million (PIPE)
• Expected closing: Early 2026
• Use of proceeds: Technology development, talent acquisition, strategic M&A, expansion of customer delivery

Financial advisers include TD Cowen (for Merlin), and Cantor Fitzgerald & Co. and Cohen & Company (for BAC). Legal advisors include Latham & Watkins for Merlin and White & Case LLP for BAC.

Merlin’s move to public ownership aims to solidify its position as a leading defence prime contractor for AI in aviation and accelerate its strategy to deliver certified autonomous flight capabilities across the military and civil aviation landscape.