- Plans to list later this year
- Counts US Air Force among global clients
- Funds to support product development, acquisitions
ZURICH, April 9 (Reuters) - Terra Quantum said on Thursday it plans to list on Nasdaq this year through a merger with a U.S. special purpose acquisition company (SPAC) in a deal that would value the German-Swiss quantum technology company at $3.25 billion.
Terra Quantum, which counts the U.S. Air Force among its clients, has opted for a listing in the U.S. because the country is the engine of growth for the sector and has led the way in setting regulatory standards, its founder, chairman and CEO Markus Pflitsch told Reuters.
"The U.S. is the powerhouse and the benchmark here. And we want to be playing in the Champions League," said Pflitsch, a self-described "half quantum physicist, half banker" who attended U.S. President Donald Trump's second inauguration.
Terra Quantum has signed a non-binding letter of intent to carry out the deal with Mountain Lake Acquisition Corp. II.
FOUNDER TO REMAIN MAJOR SHAREHOLDER
A SPAC listing ensures less exposure to market turbulence and to competition for investors from conventional initial public offerings in the sector, Pflitsch said.
Pflitsch said he would remain a large shareholder and that Terra Quantum's name and management would stay the same.
Funds gained from the listing would be used to support growth, including product development and acquisitions.
Terra Quantum aims to list later this year, though it was too early to say precisely when, Pflitsch said.
COLLABORATION WITH GLOBAL COMPANIES
Quantum technologies seek to harness the laws of quantum mechanics to perform tasks that go beyond what is realistically achievable using classical technologies.
Terra Quantum, founded in 2019 and based in St. Gallen, Switzerland, said the planned listing reflects confidence in its algorithms, software and security products and their appeal to industries like defence, finance, pharmaceuticals and logistics.
It has worked with a variety of global companies, ranging from German industrial conglomerate Siemens to consumer goods giant Unilever as well as banks HSBC and BBVA.
Those projects explored applying quantum technology in areas such as drone design and derivatives pricing.
Terra Quantum has not given details of its operating figures but Pflitsch called its revenues "significant", saying it would have access to recurring income from licensing its intellectual property, including a large library of IP-protected algorithms.
Reporting by Dave Graham; Editing by Edwina Gibbs and Alexander Smith
Source: Reuters