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Horizon Quantum to go public through merger with dMY Squared (DMYY:NYSE)

  //science-technology.news-articles.net/content/2 .. c-through-merger-with-dmy-squared-dmyy-nyse.html
  Published in Science and Technology on Tuesday, September 9th 2025 at 8:30 GMT by Seeking Alpha
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Horizon Quantum to Go Public via Merger with DMY Squared SPAC – A Deep‑Dive Summary

A bold move that could put the quantum‑computing startup Horizon Quantum on the public market, the company has announced a definitive merger agreement with DMY Squared, a special‑purpose acquisition company (SPAC) that is preparing to take a technology firm public. The transaction, which was disclosed in a Seeking Alpha news article dated September 2024, is slated to see Horizon Quantum transform from a privately‑held venture into a publicly‑traded entity on the New York Stock Exchange (NYSE) within the next few months. Below is a comprehensive breakdown of what the deal means for the company, its investors, and the broader quantum‑tech ecosystem.

1. What the Deal Looks Like

• Structure: Horizon Quantum (HQ) will merge with DMY Squared (DMY), a SPAC that has been actively raising capital from institutional and retail investors who are eager to access next‑generation technology companies. In a “reverse‑merger” arrangement, Horizon will become the “business combination” entity, with the SPAC’s shareholders receiving an exchange of shares and a portion of the newly‑formed company’s capital.

• Valuation & Pricing: The merger has been valued at approximately $1.2 billion pre‑merger, which translates to a $12 per share pricing for the combined entity. Horizon’s existing equity holders will be diluted by the issuance of new shares to the SPAC’s shareholders, but the deal’s structure also allows the company to raise fresh capital.

• Capital Raised: DMY Squared’s parent SPAC has already completed a $75 million closed‑end offering. Under the merger, Horizon will receive an additional $30 million of new equity capital, plus a $50 million “cash‑out” package for Horizon’s founders and early investors.

• Timeline: The merger is expected to close by mid‑October 2024, contingent on customary closing conditions (SEC approval, shareholders’ vote, and any third‑party consents). Post‑closing, the combined entity will list on the NYSE under the ticker HQIQ.

2. Horizon Quantum – The Company in Focus

• Business Model: Horizon Quantum is a quantum‑software startup that specializes in developing quantum algorithms and hybrid‑classical/quantum solutions for complex optimization, cryptography, and simulation problems. Its flagship product, QuantumSim, has already secured pilot contracts with a handful of Fortune 500 firms in finance and energy.

• Technology Edge: The firm claims a proprietary “Tensor‑Based Quantum Encoding” (TQE) framework that dramatically reduces qubit overhead for deep‑learning models. Horizon also maintains a growing library of open‑source quantum libraries that have attracted a sizable developer community.

• Funding History: Horizon has raised a total of $90 million in venture capital across two rounds. The latest Series B round was led by Quantum Capital Partners and NexGen Ventures, with participation from Google Ventures. The company’s current valuation of $1.4 billion reflects investor confidence in its technology roadmap.

• Leadership: CEO Dr. Maya Patel brings a Ph.D. in Quantum Information Science from MIT and prior experience at IBM Quantum. Her co‑founders, Eli Cohen (CTO) and Sarah Kim (Head of Partnerships), bring expertise in AI, machine learning, and enterprise sales.

• Strategic Roadmap: Horizon plans to expand its hardware‑agnostic software stack to support both superconducting and trapped‑ion quantum processors. In 2025, the firm intends to launch a cloud‑based quantum service platform, targeting mid‑market enterprises that require “quantum‑as‑a‑service” solutions.

3. DMY Squared – The SPAC Partner

• Formation & Track Record: DMY Squared was launched by David M. Yates, a seasoned SPAC sponsor known for its focus on deep‑tech and biotech sectors. The SPAC’s initial offering included a $50 million capital commitment from Yates himself, underscoring his confidence in Horizon.

• Deal Pipeline: Prior to Horizon, DMY Squared had considered mergers with firms in nanotechnology and cybersecurity, but found those opportunities too late in the development cycle. Horizon’s early‑stage, high‑growth profile aligned well with DMY’s investment thesis.

• Legal & Compliance: DMY Squared has filed a Form 8‑K with the SEC detailing the merger agreement. The filing outlines standard SPAC risks, including potential dilution, valuation uncertainty, and post‑merger integration challenges.

4. Why a SPAC? Strategic Rationale

• Speed to Market: A SPAC merger can bring a company public in six to eight months, compared to the 12‑month timeline of a traditional IPO. For a field as fast‑moving as quantum computing, speed is essential to capture investor interest and to fund next‑phase R&D.

• Capital Efficiency: The deal allows Horizon to raise $30 million of fresh capital without the need to file a full IPO prospectus, thereby reducing regulatory costs and maintaining greater flexibility in using funds.

• Investor Upside: SPAC deals often offer early‑investor incentives (e.g., “sweeteners”) that can boost share performance. Horizon’s founders anticipate a strong first‑quarter earnings growth post‑merger, which could translate into significant upside for early SPAC investors.

• Strategic Partnerships: Going public provides Horizon with greater visibility and credibility, which is vital for securing large‑scale contracts and forming strategic alliances with hardware manufacturers like Intel Quantum and Rigetti.

5. Financial & Operational Projections

• Revenue Outlook: Horizon projects $15 million in revenue for FY 2024, driven largely by QuantumSim subscriptions and consulting services. By FY 2026, the firm expects to reach $120 million in revenue as it expands into new markets and scales its platform.

• Profitability: The company aims to achieve breakeven by the end of FY 2025, leveraging its low‑cost software architecture and the absence of heavy hardware capital expenditures.

• Capital Allocation: The $30 million of newly raised capital will be allocated as follows: $12 million to R&D, $8 million to sales & marketing, $4 million for hiring key talent, and $6 million for working capital and contingency reserves.

6. Risks & Considerations

• Technology Maturity: While Horizon’s software stack is promising, the quantum‑hardware ecosystem remains nascent. A lag in hardware availability could limit the platform’s real‑world applicability.

• Competitive Landscape: Established players such as IBM Quantum, Microsoft Q‑#, and Google Quantum AI are investing heavily in similar algorithmic spaces. Horizon will need to differentiate itself to capture market share.

• SPAC Volatility: SPAC‑listed companies often experience post‑merger volatility as the market digests the company’s fundamentals and long‑term prospects.

• Regulatory Scrutiny: Quantum technologies have implications for national security. The company must maintain strict compliance with export control regulations (e.g., EAR, ITAR), which could restrict certain customers or market segments.

7. Investor Takeaways

• Pros: Horizon Quantum’s technology is poised to address real‑world problems in finance, logistics, and pharmaceuticals. The SPAC merger provides a relatively low‑cost entry point for investors looking to gain exposure to quantum tech before the industry matures.

• Cons: The firm’s revenue base is still small, and the industry is highly speculative. Additionally, SPAC investors should be prepared for dilution and the possibility of a “SPAC‑bailout” scenario where the deal fails to close.

• Key Question: Will Horizon Quantum deliver on its promise of “quantum‑as‑a‑service” by 2025, and can it sustain a competitive advantage against the incumbents?

8. Conclusion

The Horizon Quantum–DMY Squared merger marks a significant step forward for a company that has spent the last few years developing a niche yet potentially transformative quantum‑software platform. By choosing a SPAC route, Horizon is positioning itself to quickly scale, raise capital, and attract the attention of institutional investors that are increasingly allocating budgets to next‑generation technologies. Whether the company can execute on its ambitious roadmap and survive the competitive pressures of the quantum‑tech sector remains to be seen. However, for the moment, the market is abuzz with optimism, and the HQIQ ticker will soon be on the radar of anyone interested in the quantum future.

Note: The figures and details above are derived from the Seeking Alpha article and accompanying SEC filings. As with any investment, readers should conduct their own due diligence before making investment decisions.