Quantum technology firm EigenQ is set to become a publicly traded company through a merger with Silicon Valley Acquisition Corp., the two companies announced Wednesday.
According to Reuters, the deal values EigenQ at about $3 billion. The arrangement is structured as a SPAC merger — Silicon Valley Acquisition is what's known as a blank-check company, a shell firm that raises money and lists on a stock exchange for the sole purpose of later combining with a private business. That combination is how EigenQ would reach public markets without a traditional initial public offering.
The companies described the agreement as a definitive business combination agreement intended to create a publicly traded quantum technology company, according to a joint announcement carried by TradingView.
SPAC deals like this one let a private company go public faster and with more certainty on price than the conventional IPO route, which is one reason they have been popular with young, capital-hungry technology firms. Quantum computing companies in particular tend to need large amounts of funding well before their technology generates meaningful revenue, making access to public markets attractive.
Why it matters: a $3 billion valuation and a public listing would give EigenQ both a higher profile and fresh access to investor capital in the closely watched race to build commercially useful quantum technology.