IonQ is buying United Kingdom-based quantum computing startup Oxford Ionics in a deal valued at nearly $1.1 billion.
Shares gained about 3%.
The companies said in a release that the deal will combine IonQ’s quantum computing hardware and software knowledge with Oxford Ionics’ semiconductor chip technologies. The company aims to deliver breakthroughs in the field and capitalize on growing revenue opportunities.
“We believe the advantages of our combined technologies will set a new standard within quantum computing and deliver superior value for our customers through market-leading enterprise applications,” said IonQ CEO Niccolo De Masi in a release.
The deal, which is expected to close this year, includes $1.065 billion worth of IonQ shares and about $10 million in cash. The merged company expects to build systems with 256 qubits by 2026, over 10,000 by 2027 and 2 million by 2030.
Interest in quantum computing has skyrocketed in recent months after technology giants Microsoft and Alphabet announced new chip breakthroughs. Experts tout the technology’s ability to solve intricate computing tasks unachievable by other computers.
IonQ’s CEO previously told CNBC that he wants the company to become the “800-pound gorilla” in the quantum world.
Shares of Maryland-based company, which went public through a special purpose acquisition company in late 2021, are down about 6% year to date. The stock has soared more than 400% from a year ago.
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