Quantum scale-up Pasqal plans $2B SPAC listing, promises to ‘remain French’

In a notable development within the quantum computing sector, French company Pasqal has announced plans to go public through a merger with Bleichroeder Acquisition Corp II, a special purpose acquisition company (SPAC). This strategic move comes shortly after Finnish competitor IQM revealed similar intentions, highlighting a growing trend among European quantum firms. The merger, which values Pasqal at $2 billion pre-money, is bolstered by a separate $200 million funding round. Notable backers of Bleichroeder include Michel Combes and Andrew Gundlach, both with extensive backgrounds in telecom and investment advisory, respectively. Pasqal, a comprehensive quantum computing firm, is carving out its niche against larger technology players, generating tens of millions in annual revenue from its hardware, software, and cloud offerings to both laboratories and industrial partners. As U.S. markets have witnessed stock surges for companies pursuing public listings, Pasqal aims to capitalize on this momentum. The company plans to establish a dual listing, with its Nasdaq debut slated for this year, followed by a listing on Euronext in 2026 or 2027. This dual approach appears to be a strategy to reassure French investors, particularly Bpifrance, which holds a significant stake in Pasqal. Despite the move towards American markets, Pasqal has reiterated its commitment to remaining a French entity, maintaining its headquarters in Palaiseau, a hub for academic and industrial research. The company is also set to appoint a new non-executive chair of French nationality to its board as part of this commitment. However, there is some trepidation regarding Combes' leadership role, given his controversial exit from Alcatel-Lucent in 2015, which garnered public scrutiny from current French President Emmanuel Macron. Pasqal's internal leadership has seen changes as well, with former executive chairman Wasiq Bokhari stepping into the role of CEO. Loïc Henriet, who has held various executive positions, has returned to the CTO role. The company is poised to create highly skilled jobs in France, planning to hire 50 new employees over the next 18 months. As the competition in quantum computing heats up, with various approaches emerging, Pasqal is committed to significant R&D investment aimed at developing a fault-tolerant quantum computer by the end of the decade. This innovation is crucial for unlocking potential applications in drug discovery, healthcare, and cybersecurity. With the SPAC transaction expected to finalize in the latter half of 2026, Pasqal anticipates a pro-forma market capitalization of approximately $2.6 billion, providing the financial backing necessary to double its production capacity within two years.