Full-stack quantum computing pioneer in SPAC deal

Market news | October 7, 2021

By Rich Pell

Rigetti, a full-stack quantum computing company founded in 2013, has developed the industry’s first multi-chip quantum processor for scalable quantum computing systems. where scalability has been among the largest hurdles to bringing quantum computing to market. Its patented multi-chip architecture, says the company, is the building block for new generations of quantum processors that are expected to achieve a clear advantage over classical computers.

The company says that it will use the proceeds from the merger transaction with Supernove II to accelerate development of multiple generations of quantum processors and grow its commercial business, and expects to scale its quantum computers from 80 qubits in 2021, to 1,000 qubits in 2024, and to 4,000 qubits in 2026. The company’s quantum computers work in tandem with existing cloud and high-performance computing infrastructure and the company sells access to its machines through the Rigetti Quantum Cloud Services platform.

“In the next decade one Rigetti quantum computer could be more powerful than today’s entire global cloud,” says Chad Rigetti, Rigetti Computing CEO and Founder. “Rigetti is the leading innovator in this space. Our team has solved the most pressing scientific problems associated with bringing quantum computing to market by creating a scalable computer and high-performance integration with existing computing systems. We plan to use this capital to accelerate our product development and accelerate our goal to bring this transformational computing capability to every major industry.”

The transaction values Rigetti at a pro forma equity value of approximately $1.5 billion. The combined company is expected to receive approximately $458 million in gross cash proceeds, which includes a fully committed private investment in public equity (PIPE) in excess of $100 million, direct investment, and $345 million of cash held in the trust account of Supernova II, assuming no redemptions.

Strategic investors include Keysight Technologies and Palantir Technologies. Ampere Computing will make a direct investment. These new strategic investors, says the company, provide strong complementary technologies for advancing its quantum advantage, and build on its existing partnerships and collaborations with customers like Amazon Web Services, Astex Pharmaceuticals, DARPA, NASA, Standard Chartered Bank, and the U.S. Department of Energy.

Michael Clifton, Chief Financial Officer at Supernova II adds, “The widespread adoption of quantum computing will have a significant impact on the economy and humanity in the next decade and beyond, on par with the advent of mobile and cloud technologies. Rigetti systems’ speed and scalability set them apart amongst competitors. With its model of easy integration into existing systems, Rigetti’s technology will be used by businesses, governments and institutions across the globe.”

Upon closing of the transaction, the publicly traded company will be named Rigetti Computing, Inc. and its common stock is expected to be listed on the NYSE under the ticker “RGTI.”

Rigetti Computing