IonQ stock rises following Oxford Ionics acquisition deal

Investing.com -- Shares of IonQ Inc (NYSE:IONQ) were up 3.2% as the company announced its definitive agreement to acquire Oxford Ionics for $1.075 billion, a strategic move that combines IonQ’s quantum computing and networking stack with Oxford Ionics’ ion-trap technology. The transaction, which includes $1.065 billion in IonQ common stock and roughly $10 million in cash, is set to bolster IonQ’s position in the burgeoning quantum computing market.

The deal is expected to enhance the capabilities of both companies, with IonQ’s global resources and customer base complementing Oxford Ionics’ technological advancements. IonQ aims to integrate Oxford Ionics’ ion-trap technology, which is manufactured on standard semiconductor chips and currently holds the world records for fidelity, a key measure of quantum operations accuracy.

Investors appear to be optimistic about the acquisition’s potential to accelerate IonQ’s growth and innovation in quantum computing. The combined company plans to develop systems with 256 physical qubits by 2026 and to surpass 10,000 physical qubits by 2027, eventually aiming for 2 million physical qubits by 2030. These advancements are anticipated to enable logical qubit accuracies exceeding 99.9999999999%.

The quantum computing market has a projected value of up to $850 billion by 2040, and the management teams of both IonQ and Oxford Ionics believe that their merger will be instrumental in pioneering breakthroughs within this field. The transaction is also expected to drive the creation of disruptive applications, opening up substantial revenue growth opportunities for IonQ.

Dr. Chris Ballance and Dr. Tom Harty, founders of Oxford Ionics, are set to continue their work with IonQ post-acquisition, contributing to quantum technology development in the UK. The combined entity plans to expand its workforce in Oxford, reinforcing the UK’s leadership in quantum computing.

Maintaining existing customer relationships and government partnerships in both the UK and US is a priority for the combined company, which also plans to collaborate with the UK National Quantum Computing Centre and the government’s Quantum Missions program.

IonQ’s CEO, Niccolo de Masi, expressed enthusiasm about the acquisition, emphasizing the combined technologies’ potential to set new standards in quantum computing and deliver superior value through enterprise applications. Dr. Chris Ballance, CEO of Oxford Ionics, echoed this sentiment, highlighting the speed at which the partnership aims to develop leading fault-tolerant quantum computers.

The acquisition announcement follows IonQ’s recent momentum in the quantum computing and networking space, including the acquisition of Lightsynq and the pending acquisition of Capella.

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