Crane Harbor Surges 17% After Announcing Merger With Xanadu Quantum

Crane Harbor Acquisition Corp. (CHAC, Financials) shares jumped 17% Monday after the company announced a definitive merger agreement with Xanadu Quantum Technologies, a Canadian firm specializing in photonic quantum computing.

The transaction values Xanadu at $3 billion, with the merged company projected to have a $3.1 billion enterprise value and $3.6 billion market capitalization. The deal includes about $500 million in gross proceeds, supported by a $275 million PIPE investment from strategic and institutional backers such as AMD, BMO, and OMERS Ventures.

Founded in 2016, Xanadu is known for its Borealis quantum processor, which demonstrated quantum supremacy in 2022, and its new Aurora system a modular, networked computer designed for real-time error correction. The company's open-source platform, PennyLane, is used by nearly half of global quantum developers.

The combined company plans to list on both the Nasdaq and Toronto Stock Exchange following regulatory approval.