Yellow.ai to go public via $550m Bluerock merger

SAN MATEO, Calif. and NEW YORK, Aug. 3, 2026 /PRNewswire/ -- Yellow.ai, a global leader in enterprise agentic AI for service automation, and Bluerock Acquisition Corp. (Nasdaq: BLRK) ("Bluerock"), a publicly traded special purpose acquisition company, today announced a definitive Business Combination Agreement ("BCA") expected to take Yellow.ai public. At closing, the combined company will operate as Yellow.ai and trade on The Nasdaq Capital Market under the ticker "YAI."

Delivering Enterprise Agentic AI at Scale Today

Yellow.ai was founded in 2016 by Raghu Ravinutala, Rashid Khan and Jaya Kishore Reddy on a single conviction — that enterprise software would evolve from tools that assist people to agents that do the work. A decade later, Yellow.ai has that thesis in production.

The founding partnership has since grown from three to five. The partners — an engineering-led group with roots at IIT and MIT — combine technical depth with operating and capital-markets experience. The original founders lead product and platform, Kaushik Bhaskar brings business process outsourcing ("BPO") operating leadership, and Nand Sharma brings private-equity roll-up execution. Together, they supply the three capabilities a consolidation strategy requires.

Yellow.ai captures the hard-won expertise of an enterprise's best people and turns it into AI agents that plan, act and resolve autonomously — across systems, channels and languages. Adoption validates the technology: enterprise accounts now make up over 70% of recurring revenue, reflecting the result of a deliberate shift toward large, durable contracts.

Voice is the fastest-growing frontier in enterprise contact centers. Nexus Vox delivers low-latency, human-like voice agents in 135+ languages and is Yellow.ai's fastest-growing, most widely adopted product.

Why Yellow.ai Wins

A compounding data advantage: Every interaction improves the platform. Yellow.ai's proprietary harness, context engine and multi-LLM orchestration sit above a commoditizing model layer — where the durable value accrues.

A truly global platform: 85+ countries, with enterprise deployments across North America, Europe, Asia-Pacific and the Middle East.

Industry recognition: Named a Strong Performer in The Forrester Wave™: Conversational AI Platforms for Customer Service, Q2 2026.

Positioned to Capitalize on a Significant Market Reallocation

Management believes the shift from human-delivered to AI-delivered customer experience will be one of the largest enterprise reallocations of the coming decade. This shift is centered on the BPO market, in which enterprises outsource customer-facing and back-office functions, such as customer support, technical support, finance and accounting and human resources, to specialized third-party providers in order to improve efficiency, reduce costs, and scale their operations.

Today the BPO market is a $384 billion, labor-intensive category where roughly 85% of customer-service calls are still answered by humans. By 2035 it is projected to reach $906 billion — with the AI agent sub-segment compounding from $12 billion to $295 billion, a ~43% CAGR.

Yellow.ai is built to capture that shift: organic growth, BPO roll-ups, and proprietary industry-specific AI models.

Founders' Commentary

Raghu Ravinutala, CEO, named to the Top 50 SaaS CEOs (2023)

"Ten years ago we bet that enterprises would stop buying software that assists people and start deploying agents that do the work. That's no longer a thesis — it's in production: 16 billion conversations a year, across 135+ languages, inside some of the largest companies on earth. BPOs, with a large US market, mainly driven by humans, will move to agents that plan, act and resolve — and the platform enterprises trust to run it will define the category."

Jaya Kishore Reddy, CPO, named to BW Businessworld's 40 Under 40 (2022)

"The industry is moving to specialized models. Yellow.ai is positioned to build industry-leading IP trained on domain expertise, vertical by vertical."

Rashid Khan, CMO & Head of IR, named to Forbes' 30 Under 30 for Enterprise Technology (2022)

"Enterprise demand for AI is accelerating. This combination positions us to meet it."

Kaushik Bhaskar, CEO – AI Services

"The CX industry is at an inflection point, and Yellow.ai has the technology, data and platform to lead it — a chance to build a category-defining company."

Nand Sharma, President and Group CFO

"We pair enterprise AI software with proven operating expertise, so enterprises transform faster with better efficiency, quality and outcomes."

Sponsor Commentary

Ramin Kamfar, Chairman and CEO of Bluerock Acquisition Corp.

"As some investors seek exposure to AI roll-up strategies, Yellow.ai is executing a consolidation strategy in a market we believe is ripe for operational optimization, growth trajectory, and margin expansion. Yellow.ai has built an enterprise-grade platform already operating at production scale across some of the world's most demanding organizations. We're excited to back the Yellow.ai team as they aim to consolidate this attractive and fragmented market and scale their agentic AI platform."

Business Combination Structure to Accelerate Growth

The BCA has received unanimous approval from the Boards of Directors of both Bluerock and Yellow.ai. Completion of the Business Combination remains subject to customary closing conditions, including the requisite approval from Bluerock's shareholders.

Under the terms of the BCA, the Business Combination values Yellow.ai at a pre-money valuation of approximately $300 million.

The Business Combination ascribes a pro forma equity value of approximately $550 million to the combined company. The Business Combination is expected to generate more than $200 million in gross proceeds, including:

• Approximately $175 million of cash held in Bluerock's trust account at closing (assuming no redemptions of Bluerock's public shares); and
• Approximately $30 million of committed PIPE financing from institutional investors.

Yellow.ai intends to use the proceeds from the transaction to accelerate investment in its agentic AI platform, expand enterprise sales across North America and Europe, and scale its global operations. The combined company also plans to deploy capital toward a disciplined M&A strategy focused on acquiring complementary BPO operators. Yellow.ai plans to transform acquired BPOs into AI-native operations powered by its AI platform.

In addition to the $30 million of committed PIPE financing, Yellow.ai may raise additional PIPE financing as part of this Business Combination. The Business Combination is expected to close in the second half of 2026, subject to customary closing conditions.

Advisors

Cantor Fitzgerald & Co. ("Cantor") is acting as exclusive financial advisor to Yellow.ai. King & Spalding LLP is representing Cantor as legal counsel. Fox Rothschild LLP is representing Yellow.ai as legal counsel, and AUM Advisors is serving as communications counsel to Yellow.ai.

Bluerock Capital Markets, LLC and Brookline Capital Markets, A Division of Arcadia Securities, LLC are acting as capital markets advisors to Bluerock Acquisition Corp. Ashurst Perkins Coie US LLP is representing Bluerock Acquisition Corp. as legal counsel.

Important Information About the Proposed Business Combination and Where to Find It

In connection with the Business Combination, Bluerock intends to file with the SEC a registration statement on Form S-4 (the "Registration Statement"), which will include a proxy statement/prospectus and certain other related documents, which will serve as both the proxy statement to be distributed to Bluerock's shareholders in connection with Bluerock's solicitation for proxies for the vote by Bluerock's shareholders in connection with the Business Combination and other matters to be described in the Registration Statement, as well as the prospectus relating to the offer and sale of the securities to be issued (or deemed issued) to Bluerock's securityholders and Yellow.ai equity holders in connection with the completion of the Business Combination. After the Registration Statement is declared effective, Bluerock will mail a definitive proxy statement and other relevant documents to its shareholders as of the record date established for voting on the Business Combination. Bluerock's shareholders and other interested persons are advised to read, once available, the Registration Statement, the preliminary proxy statement/prospectus included in the Registration Statement and any amendments thereto and, once available, the definitive proxy statement/prospectus and documents incorporated by reference therein filed in connection with the Business Combination, in connection with Bluerock's solicitation of proxies for its extraordinary general meeting to be held to approve, among other things, the Business Combination, as well as other documents filed with the SEC in connection with the Business Combination, as these documents will contain important information about Bluerock, Yellow.ai, and the Business Combination. Securityholders of Bluerock and equityholders of Yellow.ai may obtain a copy of the preliminary or definitive proxy statement/prospectus, once available, as well as other documents filed by Bluerock with the SEC that will or may be incorporated by reference in the proxy statement/prospectus, without charge, at the SEC's website located at www.sec.gov or by directing a written request to Bluerock at Bluerock Acquisition Corp., 919 Third Avenue, Suite 4000, New York, New York 10022. Additional information about the Business Combination, including a copy of the BCA, will be provided in Bluerock's Current Report on Form 8-K. An investor deck will be filed together with Yellow.ai's registration statement on Form S-4, which will include a document that serves as a proxy statement of Bluerock, referred to as a proxy statement / prospectus, each of which will be filed with the Securities and Exchange Commission ("SEC") and available at www.sec.gov.

INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY, NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE PROPOSED TRANSACTION PURSUANT TO WHICH ANY SECURITIES ARE TO BE OFFERED OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

About Yellow.ai

Yellow.ai is a global leader in agentic AI for enterprise service automation. Built on a multi-LLM architecture and continuously trained on 16 billion+ conversations annually, the Yellow.ai platform helps enterprises unlock unparalleled efficiency across customer service and operations while significantly reducing operating costs. With a customer-centric approach and a team of experts focused on actionable outcomes for enterprises, their customers, and their employees, Yellow.ai continues to push the boundaries of what autonomous enterprise work can achieve.

For more information, visit www.yellow.ai.