Xanadu Expected to Become the First and Only Publicly Traded Pure-Play Photonic Quantum Computing Company via Business Combination with Crane Harbor Acquisition Corp.

Core Insights - Xanadu Quantum Technologies and Crane Harbor Acquisition Corp. have entered into a definitive business combination agreement, positioning Xanadu as the first publicly traded pure play photonic quantum computing company [1][9] - The transaction is expected to provide Xanadu with approximately US$500 million in gross proceeds, facilitating the acceleration of its quantum computing technology development [4][9] Company Overview - Xanadu is a leading photonic quantum computing company that has achieved significant milestones, including demonstrating quantum supremacy with its 216-qubit Borealis system in 2022 [2][5] - The company has developed the Aurora system, the first networked, modular, and scalable quantum computer, which includes a real-time error correction decoding algorithm [2][3] Technology and Innovation - Xanadu's quantum systems operate at room temperature, eliminating the need for cryogenics or laser cooling, and provide up to 10 times more efficient error correction than other quantum modalities [2][7] - The company aims to develop a fully fault-tolerant quantum computer with up to 100,000 physical qubits and 1,000 logical qubits by 2029 [3] Software Leadership - Xanadu's open-source software, PennyLane, is the most widely used quantum programming platform, utilized by approximately 47% of quantum programmers globally [4][5] - PennyLane is integrated across major quantum computer providers, generating revenue and expected to scale with the quantum computing market [5] Market Potential - The quantum computing sector is projected to create long-term annual value of US$450-850 billion through applications in various industries, including AI, automotive, clean energy, and finance [6][7] - Xanadu's photonic approach is seen as a leading method for large-scale quantum computers, offering advantages in scalability and resource efficiency [7][8] Transaction Details - The business combination values Xanadu at a pre-money equity value of US$3.0 billion, with a pro forma enterprise value of approximately US$3.1 billion and market capitalization of US$3.6 billion [4][9] - Over 90% of the PIPE capital is sourced from new strategic and institutional investors, including AMD and BMO Global Asset Management [4][9]