Key points
- Infleqtion, a quantum computing and precision sensor company, will merge with Churchill Capital Corp X, a SPAC led by Michael Klein.
- The deal values Infleqtion at $1.8 billion pre-investment and is expected to bring in over $540 million in funding.
- Institutional investors, including Maverick Capital, Counterpoint Global, and Glynn Capital, are co-investing.
- The combined company will trade under the ticker “INFQ” on a North American exchange, likely late 2024 or early 2025.
Quantum computing startup Infleqtion announced Monday it will go public through a merger with Churchill Capital Corp X, a special purpose acquisition company (SPAC) spearheaded by Wall Street veteran Michael Klein. The deal, valued at $1.8 billion before new investment, will inject over $540 million into Infleqtion, exceeding initial expectations.
This influx of capital includes a significant co-investment from prominent institutional investors such as Maverick Capital, Counterpoint Global, and Glynn Capital. The substantial funding will accelerate Infleqtion’s product development and expand its applications across diverse sectors, including artificial intelligence, national security, and space exploration.
Infleqtion, a developer of both quantum computers and high-precision sensors, currently boasts a strong client base, including industry giants such as Nvidia, as well as government agencies like the U.S. Department of Defense, NASA, and the UK government.
The company reported $29 million in trailing twelve-month revenue as of June 30th and projects approximately $50 million in booked and awarded business by the end of 2025. This robust pipeline underscores the considerable market demand for Infleqtion’s innovative technologies.
The merger with Churchill Capital Corp X presents a strategic pathway for Infleqtion to access public markets, avoiding the traditional, more lengthy and expensive initial public offering (IPO) process. The combined entity is expected to be listed on a major North American stock exchange under the ticker symbol “INFQ.”
Infleqtion CEO Matthew Kinsella anticipates the deal’s completion by the end of 2024 or early 2025, according to Bloomberg News. Churchill Capital Corp X held approximately $416 million in its trust account as of June 30th, further bolstering the financial strength of this merger. An additional $125 million in PIPE (Private Investment in Public Equity) funding further solidifies Infleqtion’s financial position.
Infleqtion’s decision to pursue a SPAC merger mirrors the recent trend amongst other quantum computing companies, including IonQ, Rigetti Computing, and D-Wave Quantum, all of which have leveraged SPACs to gain access to public capital. This approach signifies a growing interest among investors in the rapidly evolving quantum computing sector and its vast potential.
