Nov 3 (Reuters) - Xanadu Quantum Technologies will go

public on the Nasdaq through a merger with blank-check firm

Crane Harbor Acquisition Corp ( CHAC ) in a $3.6 billion deal,

the companies announced on Monday.

The Canadian quantum computing firm expects to fetch nearly

$500 million through the SPAC deal, including a $275 million

private investment in public equity.

Quantum computers are widely regarded to have the potential

to solve problems beyond the capability of classical computers.

The technology has progressed from theoretical promise and

fundamental challenges to practical commercial roadmaps this

year, with heightened focus from tech giants like IBM ( IBM ),

Microsoft ( MSFT ), and Google, which announced a

breakthrough algorithm last month.

Last month, U.S. banking giant JPMorgan Chase ( JPM )

also outlined quantum computing as part of a broader $1.5

trillion initiative.

Qubits - the building blocks of quantum computing - can

compute in minutes the reactions of trillions of atoms or cells

over time, making them invaluable for medicinal and materials

science breakthroughs. Classic supercomputers are estimated to

take thousands of years for similar tasks.

However, they are prone to errors that can quickly

overwhelm the useful computing work of a quantum chip, prompting

debates in the upper echelons of the tech industry on their

feasibility.

A slew of quantum computing companies have sought to go

public through SPAC mergers in recent years, sidestepping a

lengthy IPO process to list their shares.

In September, quantum computing startup Infleqtion agreed to

go public through a $1.8 billon SPAC deal with a blank-check

company led by veteran Wall Street dealmaker Michael Klein.

SPACs are shell companies that raise money through IPOs

to merge with a private company and take it public.

Morgan Stanley acted as financial advisor for Xanadu, while

JonesTrading was the capital markets advisor for Crane Harbor.