US company agrees $1.075bn acquisition of Oxford Ionics
The deal will comprise $1.065bn in shares of IonQ common stock and around $10 million in cash.
IonQ is a leader in quantum computing and networking, developing high performance systems based on trapped ion technology, to help solve the world’s most complex commercial and research challenges. Oxford Ionics is stated to hold the current world records for fidelity, which measures the accuracy of quantum operations.
The deal will bring together IonQ’s quantum compute, application and networking stack with Oxford Ionics’ groundbreaking ion-trap technology manufactured n standard semiconductor chips. The combined technologies are expected to deliver innovative, reliable quantum computers that increase in power, scale, and problem-solving capabilities.
Both companies expect to benefit from the other’s complementary technologies, deep expertise and IonQ’s global resources and established customer base.
The combined company expects to build systems with 256 physical qubits at accuracies of 99.99 per cent by 2026 and advance to over 10,000 physical qubits with logical accuracies of 99.99999 per cent by 2027. The combined company anticipates extending its innovation by reaching two million physical qubits in its quantum computers by 2030, enabling logical qubit accuracies exceeding 99.99999999 per cent.
The quantum computing market is projected to create up to $850 billion of global economic value by 2040 according to Boston Consulting Group. The relevant management teams believe the transaction will enable the combined company to pioneer breakthroughs in quantum computing.
IonQ expects that combining with Oxford Ionics will help drive the creation of disruptive applications that enable substantial revenue growth opportunities.
Both Oxford Ionics founders, Dr. Chris Ballance and Dr. Tom Harty, are expected to remain with IonQ after the acquisition is completed, continuing their pioneering work on quantum technology development in the UK. The combined entity also plans to expand its workforce in Oxford to further develop the UK's position as a leader in quantum computing.
The combined company expects to maintain all existing customer relationships, including government partnerships in both the UK and US. The company also plans to continue working with the UK National Quantum Computing Centre and the Government's Quantum Missions programme, driven by the Department for Science, Innovation and Technology and Innovate UK – helping to develop practical quantum computing applications in manufacturing, pharmaceuticals and defence.
Niccolo de Masi, CEO of IonQ, said: “IonQ’s vision has always been to drive real-world impact in every era and year of quantum computing’s growth. Today’s announcement of our intention to acquire Oxford Ionics accelerates our mission to full fault-tolerant quantum computers with two million physical qubits and 80,000 logical qubits by 2030.
“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.
“We are pleased to welcome Oxford Ionics founders Dr. Chris Ballance and Dr. Tom Harty, and the rest of the Oxford Ionics team to IonQ. Their groundbreaking ion-trap-on-a-chip technology will accelerate IonQ’s commercial quantum computer miniaturisation and global delivery. Our combined path to millions of qubits by 2030 will help ensure unit economics, scale, and power as quantum computing rapidly evolves.”
Oxford Ionics CEO Dr Chris Ballance added: “We're tremendously excited to work alongside the world-class quantum computing and networking teams at IonQ. Together, we intend to move faster than any other player in the industry to deliver the leading fault-tolerant quantum computers with transformative value for customers.
“At Oxford Ionics, we have not only pioneered the most accurate quantum platform on the market – we have also engineered a quantum chip capable of being manufactured in standard semiconductor fabs. We look forward to integrating this innovative technology to help accelerate IonQ’s quantum computing roadmap for customers in Europe and worldwide.”
The acquisition of Oxford Ionics follows IonQ’s recent quantum computing and networking momentum, including the recent purchase of Lightsynq and pending acquisition of Capella. The deal is expected to close in 2025.