BY Fraser Tennant
In a combination that will take it public, Canadian Quantum computing business D-Wave Systems Inc. is to merge with special purpose acquisition company (SPAC) DPCM Capital, Inc. in a transaction valued at $1.6bn.
Under the terms of the definitive transaction agreement, the combined company will receive $300m in gross proceeds from DPCM Capital’s trust account, as well as $40m in gross proceeds from a group of strategic and institutional investors participating in the transaction via a committed private investment in public equity (PIPE).
The PIPE is led by new and existing investors, including leading Canadian public sector pension plan manager PSP Investments, NEC Corporation, Goldman Sachs, Yorkville Advisors and Aegis Group Partners.
The transaction is expected to enhance D-Wave’s leadership in commercial quantum computing and accelerate quantum use cases into significant customer segments, including manufacturing, logistics, pharmaceuticals, finance and government.
Upon close of the transaction, shares of D-Wave Quantum Inc., a newly formed parent company of D-Wave and DPCM Capital, are expected to trade on the New York Stock Exchange under the symbol ‘QBTS’.
“This deal marks an inflection point signalling that quantum computing has moved beyond just theory and government-funded research to deliver commercial quantum solutions for business,” said Alan Baratz, chief executive of D-Wave Systems. “D-Wave, along with DPCM Capital and our new and long-term investors, collectively believe that this event represents a moment of practical value creation for customers and for investors.
“We are working with our customers to identify applications with high likelihood of quantum value and to translate those problems to run on the quantum computer and then validate that value,” he continued. “We expect this ‘value creation and validation’ to accelerate as an increasing number of diverse use cases emerge – creating a robust cycle of product delivery, application development and market growth.”
Unanimously approved by the boards of directors of D-Wave Systems and DPCM Capital, the transaction is expected to close in the second quarter of 2022, subject to the satisfaction of customary closing conditions, including approval by the stockholders of DPCM Capital.
Emil Michael, chief executive of DPCM Capital, concluded: “By accelerating the $150bn quantum computing market, we are confident that D-Wave will continue to deliver long-term value to stockholders.”
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