SEC filing on D-Wave’s SPAC merger shows off customer gains, revenue growth

DPCM Capital, which is merging with D-Wave Systems in a special purpose acquisition company transaction to enable D-Wave to go public, said a Form S-4 was filed with the U.S. Securities and Exchange Commission by its D-Wave Quantum subsidiary in connection with the proposed transaction.

An S-4 is a registration statement required in cases of mergers or similar business combinations, and includes a preliminary proxy statement and prospectus with further information about the deal–although the information in S-4 forms is subject to change before a deal closes. DPCM said in a statement about the S-4 filing that the transaction is still expected to close in the second quarter.

One notable detail mentioned in the S-4 filing is that D-Wave has “more than two dozen Forbes Global 2000 customers, representing a doubling of the number in 2020 with the year-over-year growth driven primarily in the financial services, manufacturing, and pharmaceuticals sectors.”

It also stated that D-Wave’s Quantum Computing as a Service (QCaaS) offering for commercial customers represented 68% of the company’s total revenue last year.

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The form also highlights D-Wave dual-product approach, referring to D-Wave’s annealing quantum technology and its more recent pursuit of gate-model quantum computers, as allowing the company “to address the full quantum market.” Annealing is necessary to solve commercial combinatorial optimization problems that are estimated to represent abou 25% of the total available market for quantum, according to the filing.

The document further stated that D-Wave has:

• Fifteen plus years of developing and building annealing quantum computers, uniquely enabling D-Wave to address today’s optimization portion of the quantum market for applications in important-use cases such as employee scheduling, last-mile vehicle routing, manufacturing-plant floor optimization, supply chain optimization and many others
• A powerful combination of both professional services and quantum computing as a service (QCaaS) to aid in the development and deployment of hybrid quantum business applications
• Demonstrated application speed-ups on important real-world problems
• Developed and introduced 5 generations of increasingly powerful quantum computing systems
• A track record of operational and commercial experience running a quantum computing business at scale
• An intent to continue to build on the more than 200 US patents that have been granted to D-Wave since its founding in 1999

“Today’s announcement invites investors to learn more about D-Wave’s commercial approach, our track record of product delivery, our blue-chip customer base, our professional services enabled QCaaS business and our deep patent portfolio,” said D-Wave CEO Alan Baratz, in a statement. “We are on-track with the transaction process, and we believe becoming a publicly-traded company will help us create value for our customers and for our investors through market growth, further hybrid quantum application development, and expansion of our product portfolio.”

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