IonQ to buy cybersecurity firm Elisity in $1.3 billion stock deal

Quantum computing company IonQ announced on Monday that it will acquire cybersecurity firm Elisity in an all-stock transaction valued at up to $1.3 billion. The agreement includes up to $150 million in performance-based earnouts and is expected to close in the fourth quarter, subject to regulatory approval.

The acquisition is intended to defend against and identify attackers targeting generative AI large-language models and AI agents, while also protecting against emerging quantum threats, according to a joint press release. Niccolo de Masi, IonQ's chairman and CEO, stated that integrating Elisity's team positions the company to help customers safeguard critical infrastructure and enterprise networks during the transition to the quantum era.

IonQ shares dropped more than 9% in afternoon trading following the announcement. Peers in the quantum computing sector, including Rigetti Computing and D-Wave Quantum, also traded lower. Elisity will retain its current leadership team, which includes CEO James Winebrenner.

The deal expands IonQ's cybersecurity portfolio and follows a series of recent acquisitions. In July, the company purchased semiconductor maker SkyWater Technology for $1.8 billion. Over the past year and a half, IonQ has acquired several quantum companies, most notably U.K.-based startup Oxford Ionics.

The move aligns with two executive orders issued by President Donald Trump in June, which aim to build a quantum computer for scientific research by 2028 and protect government systems from cyber threats. IonQ noted in the release that these orders underscore the urgency of preparing for quantum computing threats.