Quantum computing company IonQ announced that it would acquire Elisity in an all-stock transaction valued at up to $1.3 billion, sending shares sharply lower as the market reacted negatively. The acquisition is targeted for completion in the October–December quarter, subject to conditions including regulatory approval.
Quantum computing company IonQ announced that it would acquire cybersecurity company Elisity in an all-stock transaction. The acquisition is reportedly valued at up to approximately $1.3 billion, and the share price has declined in response to the news.
Elisity, the acquisition target, provides zero-trust security solutions. IonQ is reportedly pursuing the acquisition to expand the sales channels for its security business and broaden its business scope. Completion is targeted for the October–December quarter, subject to conditions including regulatory approval.
Analysts have described the acquisition as a “reasonable strategy,” while pointing out that the appropriateness of the acquisition price is difficult to assess because Elisity’s revenue has not been disclosed. The initial consideration is approximately $1.15 billion, which is estimated to correspond to the issuance of approximately 23 million to 35 million new shares.
IonQ has previously acquired Oxford Ionics and SkyWater in all-stock transactions, and some observers say the latest deal could lead to further dilution of existing shareholders’ holdings. Attention is expected to focus going forward on Elisity’s revenue, ARR and the way revenue from the security business is disclosed.