Defense & Military
Merlin’s 800 Million SPAC Merger Advances Autonomous Defense Aerospace
Merlin’s $800M SPAC merger accelerates growth in autonomous defense aerospace with key contracts, partnerships, and regulatory approvals.
The aerospace and defense sectors are undergoing rapid transformation, with autonomy and artificial intelligence emerging as key drivers of innovation. In August 2025, Merlin, a company specializing in autonomous flight technology for defense, announced a major milestone: its intention to go public via a merger with Bleichroeder Acquisition Corp. I, a special purpose acquisition company (SPAC) led by Inflection Point Asset Management. The deal, valuing Merlin at $800 million pre-money, stands out as a significant event in the autonomous aircraft space, reflecting both investor confidence and the growing strategic importance of autonomous systems in defense and commercial aviation.
This transaction is not just a financial maneuver; it marks an inflection point for the adoption of advanced autonomy in Aviation. With over $125 million in committed PIPE (private investment in public equity) funding and $78 million already secured, Merlin is poised to accelerate its technology development, expand its customer base, and further solidify its position as a leader in the sector. The merger also comes at a time when global defense spending and interest in unmanned systems are surging, providing Merlin with a fertile environment for growth and innovation.
As the autonomous aircraft market is projected to grow significantly over the next decade, Merlin’s approach, melding deep technical expertise with robust regulatory engagement and strategic partnerships, offers a case study in how new entrants can navigate the complexities of the aerospace industry. This article examines the details of the merger, Merlin’s technology, market context, and the broader implications for the future of autonomous flight.
Founded in 2018 by Matt George, Merlin has its roots in the convergence of artificial intelligence and aviation. George, a certified pilot, saw parallels between advances in autonomous vehicles and the potential for similar breakthroughs in air transport. Rather than aiming immediately for fully pilotless aircraft, Merlin’s strategy has emphasized a phased approach, pairing advanced automation with human pilots to build trust with regulators and users alike.
Merlin’s stated mission is to become “the world’s most capable pilot leveraging technology as the key enabler of air network resiliency.” This reflects an understanding that the adoption of autonomy in aviation is as much about trust and safety as it is about technological prowess. The company operates out of Boston, drawing on the city’s rich pool of engineering talent and proximity to leading academic and industry institutions.
Prior to the SPAC announcement, Merlin had attracted Investments from notable firms such as Baillie Gifford, First Round Capital, and Snowpoint Ventures. Its leadership team combines expertise in AI, Avionics, Certification, and defense program management, equipping the company to tackle the multifaceted challenges of bringing autonomous flight to market.
Merlin’s credibility in the defense sector is underscored by its $105 million Contract with the U.S. Special Operations Command (USSOCOM), one of the largest such awards for autonomous flight technology. This contract focuses on integrating Merlin’s autonomy suite into C-130J Super Hercules aircraft, enabling reduced aircrew operations and addressing critical pilot shortages.
Beyond the USSOCOM contract, Merlin has secured Partnerships with major aerospace players. Its collaboration with Honeywell aims to integrate Merlin’s autonomy technology with Honeywell’s widely used Anthem avionics suite, initially targeting fixed-wing military aircraft. The partnership with Northrop Grumman further validates Merlin’s technology, providing access to Northrop’s Beacon autonomous testbed for advanced validation and integration. These relationships not only provide Merlin with customer validation and technical synergies but also offer pathways for scaling its technology across diverse platforms and mission profiles. They also reflect a growing trend among established aerospace primes to invest in and partner with startups specializing in autonomy and AI.
“Merlin’s phased approach to autonomy, starting with human-machine teaming and moving toward full autonomy, has allowed it to build trust with regulators and customers while advancing its technology at a rapid pace.”
One of Merlin’s distinguishing achievements is its progress toward regulatory certification. In September 2021, Merlin secured approval for its certification basis from both the U.S. Federal Aviation Administration (FAA) and New Zealand’s Civil Aviation Authority (CAA), a global first for a takeoff-to-touchdown autonomous flight system.
New Zealand has played a pivotal role in Merlin’s certification journey. The company operates a dedicated facility in Kerikeri, where it conducts flight testing under an Experimental Certificate of Airworthiness from the CAA. This regulatory environment has enabled Merlin to accelerate development and accumulate operational data in support of broader certification efforts with the FAA and other authorities.
Merlin’s dual-track certification strategy, engaging both U.S. and international regulators, positions it advantageously as the industry moves toward wider adoption of autonomous systems. The company’s emphasis on safety, redundancy, and transparent engagement with regulators sets a benchmark for others in the space.
The merger between Merlin and Bleichroeder Acquisition Corp. I is structured to provide both immediate and long-term capital for growth. The $800 million pre-money valuation reflects the market’s recognition of Merlin’s technology, defense contracts, and growth potential. The transaction includes over $125 million in PIPE funding, with $78 million already delivered, ensuring operational continuity during the transition to public markets.
SEC filings show that the deal also features a $50 million Series A Preferred Stock investment, offering preferred shareholders a 12% payment-in-kind or 10% cash dividend rate and various governance protections. The structure allows for flexibility, with gross proceeds potentially ranging from $128 million to $257 million depending on SPAC shareholder redemptions.
Bleichroeder and Merlin’s boards have unanimously approved the merger, which is expected to close in early 2026. The transaction’s completion is subject to customary conditions, including regulatory and shareholder approvals. The involvement of Inflection Point Asset Management, known for backing high-impact technology companies, adds further credibility to the deal.
The autonomous aircraft market is experiencing rapid growth, with projections suggesting expansion from $11.67 billion in 2024 to $48.34 billion by 2033. This growth is driven by both defense and commercial demand, with North America currently holding the largest market share. Defense remains the primary driver, as militaries seek to enhance operational flexibility, address personnel shortages, and maintain technological superiority. The U.S. Air Force’s Collaborative Combat Aircraft program, for example, aims to deploy over 1,000 autonomous drones alongside manned aircraft. Meanwhile, commercial applications, such as autonomous cargo delivery, are gaining traction, with companies like Zipline demonstrating operational viability in multiple countries.
Industry trends also include increased investment in AI, augmented reality, and digitization, all of which support the development and deployment of autonomous systems. Regional dynamics are favorable, with Asia-Pacific and the Middle East investing heavily in aviation modernization and infrastructure, while Europe and North America focus on defense upgrades and sustainability.
Merlin’s core product, the Merlin Pilot, is an aircraft-agnostic autonomy platform designed for integration across a wide range of aircraft, from large military transports to smaller drones. The system employs advanced sensor fusion, AI-driven decision-making, and natural language processing for air traffic control communications.
Notably, Merlin’s technology is designed for modularity and rapid adaptation to different mission profiles. Its phased autonomy approach, starting with human-machine teaming, aligns with regulatory and customer preferences, enabling earlier adoption and operational experience.
The company’s progress in certification, combined with its strategic partnerships and government contracts, positions it as a leader in the defense segment of the autonomous aircraft market. Its ability to serve both military and commercial customers, coupled with a robust regulatory strategy, provides a competitive edge as the market matures.
“The autonomous aircraft market’s projected compound annual growth rate of over 16% underscores the sector’s momentum and the strategic value of companies like Merlin.”
Merlin’s $800 million SPAC merger is a landmark event for the autonomous flight industry, signaling both the sector’s maturation and the growing institutional confidence in AI-driven aerospace technologies. The transaction provides Merlin with the capital, partnerships, and public market visibility needed to scale its technology and expand its reach across defense and commercial markets.
As Merlin navigates the challenges of public company operations, regulatory compliance, and intensified competition, its success will serve as a bellwether for the broader autonomous aircraft sector. The company’s achievements in certification, strategic partnerships, and defense contracting lay a strong foundation for future growth, while its approach to phased autonomy and safety-first innovation sets a standard for others to follow. The coming years will reveal whether Merlin can fulfill its promise and help define the next era of aviation.
What is a SPAC merger, and why did Merlin choose this route? What are Merlin’s core technologies? How does Merlin address regulatory and safety challenges? What are the main risks facing Merlin? What is the outlook for the autonomous aircraft market? Sources: Law360, Business Wire, Merlin
Merlin’s $800 Million SPAC Merger: A New Era for Autonomous Defense Aerospace
Merlin’s Origins and Mission
Strategic Partnerships and Defense Contracts
Certification and Regulatory Progress
Deal Structure and Financial Architecture
Market Context and Industry Dynamics
Technology Platform and Competitive Positioning
Conclusion
FAQ
A SPAC (Special Purpose Acquisition Company) merger allows a private company to go public by merging with a publicly traded shell company. Merlin chose this route to access capital markets, accelerate growth, and leverage the expertise of its SPAC sponsor, Inflection Point Asset Management.
Merlin’s primary product is the Merlin Pilot, an aircraft-agnostic autonomy platform that uses AI, sensor fusion, and natural language processing to enable autonomous flight operations across a variety of aircraft.
Merlin has pursued a dual-track certification strategy with both the FAA and New Zealand’s CAA, emphasizing a phased approach to autonomy and close collaboration with regulators to ensure safety and compliance.
Key risks include regulatory delays, intense competition from established aerospace firms, technical challenges in autonomy, and market acceptance hurdles in the conservative aviation industry.
The market is projected to grow rapidly, driven by defense and commercial demand, with significant opportunities for companies that can navigate regulatory, technical, and operational complexities.
Photo Credit: Merlin
Defense & Military
France Confirms Next-Generation Nuclear Aircraft Carrier Program
France will build the PANG, a new nuclear-powered aircraft carrier to replace Charles de Gaulle by 2038, featuring EMALS and advanced fighters.
This article summarizes reporting by Reuters.
French President Emmanuel Macron has officially confirmed that France will proceed with the construction of a new nuclear-powered aircraft carrier, intended to replace the aging Charles de Gaulle by 2038. Speaking to French troops stationed in Abu Dhabi on Sunday, December 21, Macron outlined the decision as a critical step in maintaining France’s status as a global maritime power.
According to reporting by Reuters, the President emphasized the necessity of naval strength in an increasingly volatile world. The announcement, made from a strategic military base in the United Arab Emirates, underscores Paris’s commitment to projecting power beyond Europe, particularly into the Indo-Pacific region.
The new vessel, known as the Porte-Avions de Nouvelle Génération (PANG), represents a significant technological and industrial undertaking. It aims to ensure France remains the only European Union nation capable of deploying a nuclear carrier strike group, a capability central to Macron’s vision of European “strategic autonomy.”
The PANG program calls for a vessel that will significantly outclass its predecessor in size, power, and capability. While the Charles de Gaulle displaces approximately 42,500 tonnes, defense reports indicate the new carrier will be the largest warship ever built in Europe.
Based on technical data cited by naval analysts and French media, the new carrier is expected to displace between 75,000 and 80,000 tonnes and measure over 300 meters in length. It will be powered by two K22 nuclear reactors, providing nearly double the power output of the current fleet’s propulsion systems.
A key feature of the new design is the integration of the Electromagnetic Aircraft Launch System (EMALS), technology currently used by the U.S. Navy’s Gerald R. Ford-class carriers. This system replaces traditional steam catapults, allowing for the launch of heavier Military-Aircraft and Drones while reducing mechanical stress on the airframes.
The air wing is expected to include: “The decision to launch this vast programme was taken this week,” Macron told troops, highlighting the strategic urgency of the project.
The choice of Abu Dhabi for this major announcement was likely calculated. The UAE hosts a permanent French naval base, serving as a logistical hub for operations in the Indian Ocean and the Persian Gulf. By unveiling the PANG program here, Paris is signaling its intent to protect its extensive Exclusive Economic Zone (EEZ) in the Indo-Pacific and counter growing naval competition in the region.
The ambitious project comes at a time of significant domestic financial strain. Reports estimate the program’s cost will exceed €10 billion ($10.5 billion). With France facing a projected public deficit of over 6% of GDP in 2025 and a minority government navigating a hung parliament, the allocation of such vast funds has drawn criticism from opposition parties.
Critics argue the funds could be better utilized for social services or debt reduction. However, supporters and industry stakeholders note that the project will sustain thousands of jobs at major defense contractors like Naval Group and Chantiers de l’Atlantique, as well as hundreds of smaller suppliers.
The Paradox of Autonomy: While President Macron champions “strategic autonomy,” the ability for Europe to act independently of the United States, the PANG program reveals the practical limits of this doctrine. By adopting the U.S.-designed EMALS catapult system, the French Navy ensures interoperability with American supercarriers but also cements a long-term technological dependence on U.S. suppliers. This decision suggests that while France seeks political independence, it recognizes that high-end naval warfare requires deep technical integration with its NATO allies.
When will the new carrier enter service? Why is France choosing nuclear Propulsion? How much will the project cost? Will other European nations use this carrier? Sources: Reuters
France Confirms Launch of Next-Generation Nuclear Aircraft Carrier Program
A New Giant of the Seas
Technical Specifications and Capabilities
Strategic Context and Geopolitical Signals
Budgetary and Political Headwinds
AirPro News Analysis
Frequently Asked Questions
Construction is slated to begin around 2031, with sea trials expected in 2036. The vessel is scheduled to be fully commissioned by 2038, coinciding with the retirement of the Charles de Gaulle.
Nuclear propulsion offers unlimited range and the ability to sustain high speeds for long durations without refueling. It also allows the ship to generate the massive amounts of electricity required for next-generation sensors and electromagnetic catapults.
Current estimates place the cost at over €10 billion ($10.5 billion), though complex defense programs often see costs rise during development.
While the carrier is a French national asset, it is designed to support European security. However, it will primarily host French naval aviation, with potential for interoperability with U.S. and allied aircraft.
Photo Credit: U.S. Navy photo by Mass Communication Specialist 3rd Class Bela Chambers
Defense & Military
Firehawk Aerospace Expands Rocket Motor Production in Mississippi Facility
Firehawk Aerospace acquires a DCMA-rated facility in Mississippi to boost production of solid rocket motors using 3D-printing technology.
This article is based on an official press release from Firehawk Aerospace.
On December 19, 2025, Firehawk Aerospace announced a significant expansion of its manufacturing capabilities with the acquisition of a specialized defense facility in Crawford, Mississippi. The Dallas-based defense technology company has secured a 20-year lease on the 636-acre site, which was formerly operated by Nammo Talley.
This acquisition marks a strategic pivot for Firehawk as it moves to address critical shortages in the U.S. defense supply chain. By taking over a facility that is already rated by the Defense Contract Management Agency (DCMA), the company aims to bypass the lengthy construction and certification timelines typically associated with greenfield defense projects. The site will serve as a hub for the full-system integration of solid rocket motors (SRMs), complementing the company’s existing R&D operations in Texas and energetics production in Oklahoma.
The Crawford facility is located in Lowndes County within Mississippi’s “Golden Triangle” region. According to the company’s announcement, the site is a “turnkey” defense asset designed specifically for handling high-grade explosives and munitions. The infrastructure includes assembly bays protected by one-foot-thick concrete walls and safety “blowout” walls designed to contain accidental detonations.
Because the facility was previously used by Nammo Defense Systems for the high-volume assembly of shoulder-launched munitions, such as the M72 LAW and SMAW systems, it retains the necessary regulatory certifications to allow for rapid operational ramp-up. Firehawk Aerospace CEO Will Edwards emphasized the urgency of this expansion in a statement regarding the deal.
“This acquisition strengthens Firehawk’s ability to address one of the nation’s most urgent defense challenges: rebuilding munition inventories that have been drawn down faster than they can be replaced.”
, Will Edwards, Co-founder and CEO of Firehawk Aerospace
The acquisition comes at a time when the Western defense industrial base is grappling with a severe shortage of solid rocket motors, which power critical systems like the Javelin, Stinger, and GMLRS missiles. Traditional manufacturing methods, which involve casting propellant in large batches that take weeks to cure, have created production bottlenecks.
Firehawk Aerospace intends to disrupt this model by utilizing proprietary 3D-printing technology to manufacture propellant grains. According to the press release, this additive manufacturing approach reduces production times from weeks to hours. The company has explicitly stated that the new Mississippi facility is being designed to achieve a production tempo of “thousands of rockets per month,” a significant increase over legacy industry standards. “While the current industrial base is built to produce thousands of rockets per year, we are building this site… to operate at a much higher production tempo… designing for throughput measured in thousands per month, not years.”
, Will Edwards, CEO
The expansion is expected to bring skilled jobs to the Golden Triangle region, which is increasingly becoming a hub for aerospace and defense activity. Mississippi Governor Tate Reeves welcomed the investments, noting the dual benefits of economic growth and national security support.
“Their acquisition in Crawford will bring skilled jobs to the region while directly contributing to the production capacity our nation needs.”
, Tate Reeves, Governor of Mississippi
From R&D to Mass Production: This acquisition signals Firehawk’s transition from a development-focused startup to a volume manufacturer. By securing a pre-rated facility, Firehawk has effectively shaved 2–3 years off its timeline, the period typically required to build and certify a new explosives handling site. This speed is critical given the current geopolitical demand for tactical munitions.
Supply Chain Decentralization: The move also highlights a strategy of decentralization. By distributing operations across Texas (R&D), Oklahoma (Energetics), and now Mississippi (Integration), Firehawk is building a supply chain that may prove more resilient than centralized legacy models. This geographic diversity also allows the company to tap into distinct labor markets and state-level incentives, such as Mississippi’s aerospace initiatives.
What is the significance of the DCMA rating? How does Firehawk’s technology differ from traditional methods? What was the facility used for previously?
Firehawk Aerospace Acquires Mississippi Facility to Scale Rocket Motor Production
Strategic Asset Details
Addressing the “Rocket Motor Crisis”
Regional Economic Impact
AirPro News Analysis
Frequently Asked Questions
A DCMA (Defense Contract Management Agency) rating verifies that a facility meets strict Department of Defense quality and safety standards. Acquiring a pre-rated facility allows Firehawk to begin production much faster than if they had to build and certify a new site from scratch.
Traditional solid rocket motors are cast in large batches, a process that requires weeks for the propellant to cure. Firehawk uses 3D-printing technology to print propellant grains, which allows for custom geometries and reduces the manufacturing time to mere hours.
The facility was formerly operated by Nammo Talley (now Nammo Defense Systems) for the assembly of shoulder-launched munitions, including the M72 LAW and SMAW systems.Sources
Photo Credit: Firehawk Aerospace
Defense & Military
20 Years of the F-22 Raptor Operational Capability and Upgrades
Lockheed Martin celebrates 20 years of the F-22 Raptor’s operational service, highlighting its stealth, combat roles, readiness challenges, and modernization.
Lockheed Martin has launched a campaign commemorating the 20th anniversary of the F-22 Raptor achieving Initial Operational Capability (IOC). In December 2005, the 27th Fighter Squadron at Langley Air Force Base in Virginia became the first unit to field the fifth-generation fighter, marking a significant shift in global air superiority.
According to the manufacturer’s announcement, the aircraft continues to define the benchmark for modern air combat. In a statement regarding the milestone, Lockheed Martin emphasized the platform’s enduring relevance:
“The F-22 Raptor sets the global standard for capability, readiness, and mission success.”
While the airframe was designed in the 1990s and first flew in 1997, the F-22 remains a central pillar of U.S. air power. The fleet, which consists of approximately 185 remaining aircraft out of the 195 originally built, has evolved from a pure air superiority fighter into a multi-role platform capable of ground strikes and strategic deterrence.
Since its operational debut, the F-22 has maintained a reputation for dominance, primarily established through high-end military aircraft exercises rather than direct air-to-air combat against manned aircraft.
Data from the U.S. Air Force and independent observers highlights the discrepancy between the Raptor’s exercise performance and its real-world combat engagements. During the 2006 Northern Edge exercise, its first major test after becoming operational, the F-22 reportedly achieved a 108-to-0 kill ratio against simulated adversaries flying F-15s, F-16s, and F/A-18s.
Despite this lethality in training, the aircraft’s combat record is distinct. The F-22 made its combat debut in September 2014 during Operation Inherent Resolve, conducting ground strikes against ISIS targets in Syria. To date, the aircraft has zero confirmed kills against manned enemy aircraft. Its sole air-to-air victory occurred in February 2023, when an F-22 utilized an AIM-9X Sidewinder missile to down a high-altitude Chinese surveillance balloon off the coast of South Carolina.
The primary driver of the F-22’s longevity is its low observable technology. Defense analysts estimate the Raptor’s Radar Cross Section (RCS) to be approximately 0.0001 square meters, roughly the size of a steel marble. This makes it significantly stealthier than the F-35 Lightning II and orders of magnitude harder to detect than foreign competitors like the Russian Su-57 or the Chinese J-20.
While Lockheed Martin’s anniversary campaign highlights “readiness” as a key pillar of the F-22’s legacy, recent Air Force data suggests a more complex reality regarding the fleet’s health. We note that maintaining the world’s premier stealth fighter comes at a steep logistical cost. According to data published by Air & Space Forces Magazine regarding Fiscal Year 2024, the F-22’s mission capable (MC) rate dropped to approximately 40%. This figure represents a decline from roughly 52% in the previous fiscal year and indicates that, at any given time, fewer than half of the Raptors in the inventory are flyable and combat-ready.
This low readiness rate is largely attributed to the fragility of the aircraft’s stealth coatings and the aging avionics of the older airframes. The Air Force has previously attempted to retire 32 older “Block 20” F-22s used for training to divert funds toward newer programs, though Congress has blocked these efforts to preserve fleet numbers. The contrast between the jet’s theoretical dominance and its logistical availability remains a critical challenge for planners.
Contrary to earlier projections that might have seen the F-22 retired in the 2030s, the Air Force is investing heavily to keep the platform viable until the Next Generation Air Dominance (NGAD) fighter comes online.
In 2021, the Air Force awarded Lockheed Martin a $10.9 billion contract for the Advanced Raptor Enhancement and Sustainment (ARES) program. This decade-long modernization effort aims to update the fleet’s hardware and software.
According to budget documents for Fiscal Year 2026, the “Viability” upgrade package includes several key enhancements:
These investments suggest that while the F-22 is celebrating its past 20 years, the Air Force intends to rely on its capabilities well into the next decade.
Sources: Lockheed Martin, U.S. Air Force
Two Decades of the Raptor: Celebrating the F-22’s Operational Milestone
Operational History and Combat Record
Exercise Performance vs. Combat Reality
Stealth Capabilities
AirPro News Analysis: The Readiness Paradox
Modernization and Future Outlook
The ARES Contract and Upgrades
Sources
Photo Credit: Lockheed Martin
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