Crane Harbor and Xanadu: Merger News with a 17% Increase

Crane Harbor Acquisition Corp. (CHAC) shares rose by 17% following the announcement of a definitive merger agreement with Xanadu Quantum Technologies. Xanadu is a Canadian firm specializing in photonic quantum computing.

This transaction values Xanadu at $3 billion, while the combined company is expected to highlight an $3.1 billion enterprise value and $3.6 billion market capitalization. The total gross proceeds outlined in the deal are planned to be $500 million, supported by a $275 million PIPE investment from strategic and institutional investors, including AMD, BMO, and OMERS Ventures.

Founded in 2016, Xanadu demonstrated quantum supremacy with its Borealis quantum processor in 2022, and introduced the Aurora system, a new modular and networked computer designed for real-time error correction. Additionally, the company’s open-source platform, PennyLane, is utilized by nearly half of quantum developers worldwide.

The combined company is expected to be traded on both Nasdaq and the Toronto Stock Exchange following regulatory approval.