Quantum computing startup D-Wave is going public in a $1.6 billion SPAC deal
After a red hot 2021 SPAC mergers, 2022 is shaping out to be another strong year. Today, Grab becomes the latest in a series of tech companies going public via special purpose acquisition company (SPAC) as investors poured billions of dollars into online delivery startups.
Today, Quantum computing startup D-Wave Systems announced it had agreed to go public through a merger with a blank-check firm DPCM Capital in a deal that values the combined company at nearly $1.6 billion. The startup plans to use the proceeds to grow its global footprint to emerging markets and build on its 200-plus patents.
Sometimes called a blank-check company, SPAC is a shell company that has no operations but plans to go public with the intention of acquiring or merging with a company utilizing the proceeds of the SPAC’s initial public offering (IPO). So far this year, there are SPAC 29 deals, according to data from the SPAC analytics firm, SPACAnalytics.com.
As part of the deal, D-Wave said it expects to raise up to $340 million in total proceeds, including a $40 million private placement in public equity from PSP Investments, Goldman Sachs Asset Management, NEC Corporation, Yorkville Advisors, and Aegis Group Partners.
Founded in 1999 by Eric Ladizinsky and Geordie Rose, the British Columbia, Canada-based D-Wave Systems designs and manufactures quantum computing and superconducting electronics. The company also provides real-time, full-stack quantum systems that power hardware engineering, post-processing software, and chip fabrication. D-Wave’s customers include Accenture, Volkswagen AG, and defense systems maker Lockheed Martin.
The company also offers D-Wave One system, a computing system that is designed for industrial problems encountered by Fortune 500 companies, government, and academia. Its products are used in sectors ranging from logistics and artificial intelligence to financial modeling and cybersecurity.
Upon the closing of the deal, the combined company will be known as D-Wave Quantum Inc and trade on the New York Stock Exchange under the symbol “QBTS.”