IonQ Acquires Oxford Ionics for $1.1 Billion, Aiming to Accelerate Quantum Computing Advancements

US quantum computing company IonQ to buy Oxford university start-up

US quantum computing company IonQ has agreed to buy a UK technology start-up spun out of Oxford university in a $1.1bn all-stock deal as breakthroughs in the sector spark early signs of dealmaking activity. Maryland-based IonQ, which had a market value of nearly $10bn at Friday's close, is among the companies at the forefront of the field, where technology groups such as IBM and Google parent Alphabet are racing to develop more powerful and easily operable quantum computers. Unlike conventional computers, which solve problems using bits, quantum computers harness quantum bits, or qubits, that can process information at an exponentially faster rate, potentially yielding huge advances in areas such as drug discovery. But higher error rates have proved to be a stumbling block for the nascent sector. IonQ said on Monday that it had struck a $1.07bn all-stock deal to buy Oxford Ionics, under the terms of which the UK start-up's investors will receive between 7.3 per cent and 11.9 per cent of IonQ's common stock depending on share price performance in the run-up to the deal closing. The deal is expected to close this year. Oxford Ionics' investors will also receive $10mn in cash. IonQ's newly appointed chief executive Niccolo de Masi said the acquisition would help the company achieve its goal of becoming "the Nvidia of quantum". "This is a change-the-world advancement which is coming sooner and faster than people think," de Masi told the Financial Times. The acquisition of Oxford Ionics will enable IonQ to produce a so-called fault-tolerant quantum computer with processing power of 80,000 logical qubits and 2mn physical qubits by the end of the decade, the company said on Monday. IBM, which has developed one of the most powerful quantum machines to date with more than 1,000 qubits, is trying to develop a 100,000-qubits supercomputer by 2033. Oxford Ionics, which was founded in 2019 by Oxford university physicists Chris Ballance and Tom Harty, is among the leaders in developing one of the most accurate quantum machines using ion-trapped technology manufactured on standard semiconductor chips, which suffer from a much lower number of random errors. Oxford Ionics' 80-strong workforce, including its founders, will join IonQ after the deal is completed. IonQ has signed up customers such as US government-backed Oak Ridge National Laboratory, UK drugmaker AstraZeneca and manufacturing group Airbus. The company is projected to generate between $75mn-95mn in revenues this year by putting its quantum computer processing power to work solving problems for its clients. The takeover of Oxford Ionics will be IonQ's sixth acquisition since the end of December 2022, as the group has tried to cement its status as the biggest pure-play quantum computing company globally. Shares in New York-listed IonQ have almost quadrupled over the past year as excitement around quantum computing has grown following the boom in artificial intelligence stocks, giving it a share price of $39 apiece.

IonQ Buys Oxford Ionics In $1.075 Billion Deal To Supercharge Quantum Tech - IonQ (NYSE:IONQ)

IonQ IONQ stock gained on Monday premarket after it announced that it has agreed to acquire Oxford Ionics for $1.075 billion, which will consist of $1.065 billion in shares of IonQ common stock and approximately $10 million in cash. The transaction will combine IonQ's quantum computing, application, and networking stack with Oxford Ionics' ion-trap technology manufactured on standard semiconductor chips. The company said in a press release that the combined technologies will likely deliver innovative, reliable quantum computers that increase in power, scale, and problem-solving capabilities. Also Read: Quantum Computing Stocks In Focus: Pure Play Vs. Large Caps - Here's A Look At The Valuations The combined company expects to build systems with 256 physical qubits at accuracies of 99.99% by 2026 and advance to over 10,000 physical qubits with logical accuracies of 99.99999% by 2027. The combined company anticipates extending its innovation by reaching 2 million physical qubits in its quantum computers by 2030, enabling logical qubit accuracies exceeding 99.9999999999%. According to Boston Consulting Group, the quantum computing market can generate up to $850 billion of global economic value by 2040. Both Oxford Ionics founders, Dr. Chris Ballance and Dr. Tom Harty, will likely remain with IonQ after the acquisition. The combined entity also plans to expand its workforce in Oxford to develop further the UK's position as a leader in quantum computing. The combined company expects to maintain all existing customer relationships, including government partnerships in the UK and US. It also plans to continue working with the UK National Quantum Computing Centre and the government's Quantum Missions program, driven by the Department for Science, Innovation and Technology and Innovate UK, to help develop practical quantum computing applications in manufacturing, pharmaceuticals, and defense. The acquisition of Oxford Ionics follows IonQ's recent momentum in quantum computing and networking, including the recent acquisition of Lightsynq and the pending acquisition of Capella. IonQ held $697.1 million in cash and equivalents as of March 31, 2025. The stock has surged 375% in the last 12 months. CNBC's Jim Cramer said IonQ was "too speculative" for him in May. "It is so high, and it's also losing so much money," he had said. Price Action: IONQ shares are trading higher by 3.61% to $40.42 premarket at last check Monday. Read Next: Qualcomm Bets $2.4 Billion On Alphawave To Power AI Data Centers Image via Shutterstock IONQIonQ Inc$40.553.92%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum98.67GrowthNot AvailableQualityNot AvailableValue3.29Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

IonQ to buy Oxford Ionics for $1.08 billion to expand quantum computing research

(Reuters) -IonQ will acquire its British peer Oxford Ionics for $1.08 billion, the companies said on Monday, helping the U.S.-based quantum computing firm deepen its research expertise in the complex technology that is seeing booming investor interest. Shares of IonQ rose close to 4% premarket. The company was valued at $10.15 billion as of last close. Quantum computers are faster and more efficient than their classical counterparts, performing more niche and advanced calculations, partly due to their ability to predict the results of multiple paths simultaneously and store vast amounts of data. The technology is drawing hundreds of millions of dollars in funding from technology giants such as Microsoft, Alphabet's Google and IBM. Oxford Ionics' work is centred around novel methods of controlling qubits, the fundamental unit of quantum computers that much of modern quantum research is focusing on. The British firm's founders, Chris Balance and Tom Harty, who are also researchers in the field, will remain with IonQ after the acquisition completes, the companies said. The cash-and-stock transaction is expected to close this year, and the number of shares IonQ will issue will depend on its stock price over a 20-day period before the deal closes. The price per share will stay within a range of $30.22 to $50.37, the companies said. While revenues of quantum computing firms like IonQ and Rigetti remain small, the technology is seen as a key national security undertaking, along with the ability to serve in industries like medical research and cybersecurity. IonQ has sought to expand through deals over the past year, such as the acquisition of Boston-based startup Lightsynq, which specializes in quantum memory. Nvidia CEO Jensen Huang said in March the AI chip leader will also open a quantum computing research lab, having earlier cast doubts on the timeline for practical applications of the technology. (Reporting by Arsheeya Bajwa and Rishabh Jaiswal in Bengaluru; Editing by Janane Venkatraman and Leroy Leo)