OXFORD: IonQ (NYSE: IONQ), a leader in quantum computing, announced Monday it has entered a definitive agreement to acquire Oxford Ionics in a deal valued at $1.075 billion, combining cash and stock to accelerate the development of high-performance quantum systems.
The transaction includes $1.065 billion in IonQ common stock and approximately $10 million in cash, subject to customary closing adjustments. The merger aims to integrate IonQ’s quantum computing and networking capabilities with Oxford Ionics’ advanced ion-trap technology, which holds world records for quantum operation accuracy.
The combined company expects to deliver quantum computers with 256 physical qubits at 99.99% accuracy by 2026, scaling to over 10,000 physical qubits with 99.99999% logical accuracy by 2027. By 2030, the companies project a system with 2 million physical qubits, enabling unprecedented precision in quantum computing.
“This acquisition accelerates our mission to build fault-tolerant quantum computers with millions of qubits, setting a new industry standard,” said IonQ CEO Niccolo de Masi.
Oxford Ionics’ co-founders, Dr. Chris Ballance and Dr. Tom Harty, will join IonQ, expanding its U.K.-based research team. The deal also strengthens IonQ’s partnerships with government and industry programs, including the U.K. National Quantum Computing Centre.
The quantum computing market could generate up to $850 billion in global economic value by 2040, according to Boston Consulting Group. IonQ anticipates the merger will drive breakthroughs in sectors like pharmaceuticals, defense and manufacturing.
According to a statement, the transaction is expected to close later this year, pending regulatory approvals.
IonQ develops trapped-ion quantum computers for commercial and research applications.
Oxford Ionics is the U.K.-based company specializes in high-accuracy quantum computing technology.