Quantum-Computing Company IonQ to Buy Cybersecurity Firm for Up to $1.3 Billion
Privately held Elisity stops cyber attackers and ransomware from spreading across organizations
- IonQ agreed to buy cybersecurity firm Elisity in an all-stock deal valued at up to $1.3 billion.
- The deal price includes up to $150 million in extra earnouts that are subject to Elisity’s future performance.
- IonQ CEO Niccolo de Masi said the acquisition is a bet that cybersecurity will become more critical as quantum and AI systems advance.
Quantum-computing company IonQ IONQ 1.12%increase; up pointing triangle struck an all-stock deal to buy Elisity in a transaction that values the cybersecurity firm at up to $1.3 billion, executives told The Wall Street Journal.
It is a bet that cybersecurity will be even more critical for companies as quantum computing and AI systems become more powerful and advanced, said IonQ Chairman and Chief Executive Niccolo de Masi.
“The bad guys are going to keep taking advantage of new technology,” he said in an interview. “Unfortunately, we are entering the most dangerous years, vis-à-vis cybersecurity risks.”
The details
The $1.3 billion deal price includes up to $150 million in extra earnouts subject to Elisity’s future performance. The number of IonQ shares expected to be issued in the transaction will be calculated at a price between $33.07 and $49.61 a share, the executives said.
IonQ shares closed Friday at $39.89, with its market value close to $16 billion. The company’s stock has been on a tear since it went public via a special-purpose acquisition company in 2021.
IonQ’s quantum hardware and software aims to solve problems too difficult for traditional computers across a range of industries, from drug discovery to national defense. It specializes in what’s called trapped-ion quantum computers that have proved to offer greater accuracy.
The business has gotten a boost from the Trump administration’s growing enthusiasm for and backing of quantum-computing technology in the U.S. Over the summer, the president signed executive orders pushing for building a powerful quantum computer and protecting the government against related cyber threats.
Founded in 2019, Elisity offers a platform that aims to prevent cyber attackers or ransomware from spreading across organizations. Some of its big customers include healthcare companies and hospitals.
Elisity Chief Executive James Winebrenner is expected to remain after the deal with IonQ closes. The transaction is set to be announced by the companies later Monday.
The context
De Masi said the two companies together will aim to help customers address various growing cybersecurity risks, including threats that involve so-called AI agents.
A series of rogue AI hacks in recent months has rattled the industry and government officials. In one instance, a swarm of OpenAI agents accessed U.S. government websites over several months. Anthropic’s Mythos model has also set off alarm bells on Wall Street.
De Masi said American corporations and the U.S. government must be prepared ahead of “Q-Day”—a looming point in time when quantum computers will be powerful enough to crack today’s widely used public-key cryptography.
IonQ, which works closely with the U.S. Defense Department, has been on an acquisition spree to become a one-stop shop for its customers. Earlier this year, it struck its biggest deal yet, a $1.8 billion takeover of chip maker SkyWater Technology.