Quantum computing company D-Wave to go public via $1.6 bln SPAC deal

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Feb 8 (Reuters) - Quantum computing firm D-Wave Systems Inc said on Tuesday it had agreed to go public by merging with blank-check company DPCM Capital (XPOA.N) in a deal that values the combined company at nearly $1.6 billion.

Vancouver-based D-Wave is pushing ahead with the deal even as other companies that recently took a similar route, such as Grab Holdings and BuzzFeed (BZFD.O), have seen their market valuations tumble amid choppy conditions.

D-Wave said it expects to raise up to $340 million in gross proceeds from the deal, including a $40 million private placement in public equity from PSP Investments, Goldman Sachs Asset Management, NEC Corporation, Yorkville Advisors and Aegis Group Partners.

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The company plans to use the proceeds to grow its global footprint to emerging markets and build on its 200-plus patents.

Shares of DPCM Capital were up 0.7% at $9.87 before the bell.

Founded in 1999, D-Wave provides real-time, full-stack quantum systems that power hardware engineering, post-processing software and chip fabrication. They find use in sectors ranging from logistics and artificial intelligence to financial modelling and cybersecurity.

Auto major Volkswagen AG (VOWG_p.DE), software firm Accenture (ACN.N) and defense systems maker Lockheed Martin (LMT.N) are among D-Wave's blue-chip customers.

Upon closing 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".

Morgan Stanley is serving as the financial advisor to D-Wave, while Citigroup is serving as the capital markets advisor to DPCM.

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Reporting by Mehnaz Yasmin in Bengaluru; Editing by Devika Syamnath and Ramakrishnan M.

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