Xanadu to Become First Publicly Traded Pure-Play Photonic Quantum Computing Company via SPAC Merger

Xanadu Quantum Technologies, a Canadian photonic quantum computing firm, is set to become the first and only publicly traded pure-play photonic quantum computing company through a business combination with Crane Harbor Acquisition Corp., a special purpose acquisition company (SPAC). Upon closing, the combined entity will be listed on both the Nasdaq Stock Market and the Toronto Stock Exchange.

The transaction values Xanadu at a pre-money equity value of $3 billion, with a pro forma enterprise value of approximately $3.1 billion and a market capitalization of around $3.6 billion. The merger is expected to raise about $500 million in gross proceeds, including $275 million from a fully committed private investment in public equity (PIPE), largely sourced from new strategic and institutional investors such as AMD, BMO Global Asset Management, and CIBC Asset Management.

Xanadu’s photonic quantum systems operate at room temperature without the need for cryogenics or laser cooling. The company has pioneered the first networked, modular, and scalable quantum computer with its Aurora system, demonstrating up to 10 times more efficient error correction than competing quantum modalities. Their quantum programming software, PennyLane, is widely adopted by the quantum developer community.

The raised capital will accelerate Xanadu’s development and deployment towards a fully fault-tolerant quantum computer by 2029, targeting a quantum computer with up to 100,000 physical qubits and 1,000 logical qubits. This milestone positions Xanadu at the forefront of quantum innovation, bringing accessible and practical quantum computing closer to reality.

Source: Xanadu