Quantum computing firm D-Wave Systems Inc. said on Tuesday it had agreed to go public by merging with blank-check company DPCM Capital in a deal that values the combined company at nearly $1.6 billion.

Vancouver-based D-Wave is pushing ahead with the deal even as other companies that recently took a similar route, such as Grab Holdings and BuzzFeed, have seen their market valuations tumble amid choppy conditions.

D-Wave said it expects to raise up to $340 million in gross proceeds from the deal, including a $40 million private placement in public equity from PSP Investments, Goldman Sachs Asset Management, NEC Corporation, Yorkville Advisors and Aegis Group Partners.

The company plans to use the proceeds to grow its global footprint to emerging markets and build on its 200-plus patents.

Shares of DPCM Capital were up 0.7% at $9.87 before the bell.

Founded in 1999, D-Wave provides real-time, full-stack quantum systems that power hardware engineering, post-processing software and chip fabrication. They find use in sectors ranging from logistics and artificial intelligence to financial modeling and cybersecurity.

Auto major Volkswagen AG, software firm Accenture and defense systems maker Lockheed Martin are among D-Wave's blue-chip customers.

Upon closing the deal, the combined company will be known as D-Wave Quantum Inc and trade on the New York Stock Exchange under the symbol "QBTS."

Morgan Stanley is serving as the financial advisor to D-Wave, while Citigroup is serving as the capital markets advisor to DPCM.