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 per cent 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.
