Information on the Target

Infleqtion is a leading innovator in the realm of neutral atom-based quantum technology. The company focuses on transforming quantum advancements into practical solutions that enhance human capabilities. Infleqtion designs, constructs, and markets quantum computers, precision sensors, and related software solutions targeted at governments, corporations, and research institutions. With a pioneering approach utilizing neutral atom technology known for its scalability and cost-effectiveness, Infleqtion is well-positioned to deliver both quantum computing and precision sensing functionalities through a unified product architecture.

Infleqtion’s product lineup includes quantum computers, quantum clocks, RF receivers, and inertial sensors, each optimized for deployment in real-world scenarios. Their technology is already in use by notable clients such as NVIDIA, NASA, and the U.S. Department of Defense, yielding approximately $29 million in revenue over the past twelve months ending June 30, 2025. This impressive figure reflects a compounded annual growth rate of approximately 80% over the last two years. By the close of 2025, Infleqtion anticipates approximately $50 million in booked and awarded business, alongside a potential customer pipeline exceeding $300 million, suggesting a robust growth outlook.

Industry Overview in the Target’s Specific Country

The quantum technology sector in the United States has been experiencing remarkable growth, driven by increased investments from both private and public sectors. With projections indicating the quantum computing and sensing markets could surpass $160 billion by 2040, the U.S. is reaffirming its commitment to securing a leadership position in this strategic field.

Federal funding initiatives have further bolstered the industry, with more than $40 billion allocated to quantum research aimed at maintaining a competitive edge in national security and technological advancements. This substantial investment underscores the significance of quantum as a transformative force across various domains, including artificial intelligence, materials science, and defense.

As the market continues to expand, companies pioneering quantum solutions, like Infleqtion, are at the forefront, translated scientific innovations into tangible commercial applications that meet the demands of various sectors ranging from aerospace to finance. The growth in partnerships with governmental institutions highlights the essential role these technologies play in maintaining security and fostering innovative capabilities.

The transition of quantum technologies from experimental phases to commercial applications signifies an exciting period of potential for the industry. Infleqtion, with its established track record and collaboration with high-profile clients, is well-positioned to capitalize on emerging opportunities within this evolving landscape.

The Rationale Behind the Deal

The business combination between Infleqtion and Churchill Capital Corp X is designed to accelerate Infleqtion’s mission of commercializing quantum solutions effectively. By aligning with Churchill Capital, Infleqtion gains access to essential capital and strategic expertise to expedite its journey from research and development to full-scale production. This partnership is seen as an opportunity to meet the surging demand for quantum technology in sectors like artificial intelligence, national security, and space exploration.

Furthermore, the merger provides a robust financial foundation, enabling Infleqtion to strengthen its balance sheet, enhance its technological innovations, and broaden its market reach. The anticipated influx of over $540 million in gross proceeds is expected to significantly support the company’s ambitious growth trajectory and expand its application into new markets.

Information About the Investor

Churchill Capital Corp X is a publicly traded special purpose acquisition company (SPAC) dedicated to merging with an innovative target to create share value. Founded by Michael Klein, the firm is known for its strategic partnerships with forward-thinking technology companies that promise technological advancements. Churchill Capital actively seeks investment opportunities that can shape the future landscape, particularly in high-growth sectors such as technology and healthcare.

With a current cash position exceeding $400 million, Churchill Capital is well-equipped to back Infleqtion's ambitious growth plans. This investment aims not only to provide necessary funding but also to leverage Churchill's extensive network and knowledge to enhance Infleqtion's capabilities and market position.

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The merger between Infleqtion and Churchill Capital Corp X represents a compelling investment opportunity with the potential for high returns. Infleqtion’s leading position in neutral atom technology and its demonstrated revenue growth enhance its credibility as a pioneering entity in the quantum space. The expected growth trajectory and substantial market opportunities reinforce the rationale behind this investment.

Given that quantum technology is identified as a pivotal element in national security and various commercial sectors, Infleqtion’s strategic alignment with governmental institutions presents a solid foundation for sustaining momentum and fostering innovation. The company’s ability to convert proprietary technology into real-world applications stands out as a key differentiator.

The favorable transaction structure further adds to its attractiveness, allowing Churchill Capital X shareholders and new investors to enter at a robust valuation of $1.8 billion. The significant influx of capital is poised to enhance Infleqtion's operational capabilities, technological advancements, and overall market penetration.

In summary, the investment aligns well with the exponential growth trajectory of the quantum sector, making this merger not only timely but essential. The strategic collaboration is expected to position Infleqtion strongly within the marketplace, enabling it to capitalize effectively on emerging opportunities well into the future.

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