Elroy Air, a California cargo drone startup aiming to replace delivery trucks, is nearing a deal to merge with Columbus Circle Capital Corp. II, the Inflection Point Asset Management-backed SPAC that raised $230 million in its February 2026 IPO, at an enterprise value of roughly $1 billion.
The transaction could be announced as soon as Friday. Columbus Circle’s trust holds $230 million, raised at $10.00 per unit, and it’s on a 24-month clock to close a business combination.
What does the buyer actually get? Elroy Air’s Chaparral: a hybrid-electric VTOL drone rated for 300 pounds of cargo across 300 miles, targeting the middle-mile run between distribution centers that trucking currently owns. Kratos Defense & Security Solutions holds the exclusive U.S. manufacturing contract under a five-year deal signed in September 2025, with first production aircraft expected this year.
The eVTOL SPAC class of 2020-2021 printed at far higher entry points: Joby Aviation at $6.6 billion, Archer Aviation at $3.8 billion. By that measure, Elroy Air’s $1 billion looks disciplined for a pre-revenue platform. The Chaparral completed its first A-to-B cargo run in December 2025, carrying 213 pounds across 2.6 miles in Byron, California — a milestone, but it’s still pre-scale. Columbus Circle is buying a bet on what the Chaparral can become.
No close date was disclosed.
Diana Kowalski