Insider Brief
- IonQ has reached an agreement to acquire most of Qubitekk’s assets, integrating the quantum networking company’s team to strengthen IonQ’s position in quantum networking; the deal is expected to close within six months.
- Qubitekk brings expertise in ultra-secure quantum networks, including the U.S.’s first commercial quantum network, EPB Quantum Network, and adds 118 patents to IonQ’s portfolio, expanding their capabilities in quantum networking hardware and security.
- IonQ sees quantum networking as key for scaling its quantum systems and expects the acquisition to enhance revenue opportunities, following recent major contracts, including a $54.5 million U.S. Air Force award for developing quantum networking technology.
PRESS RELEASE — IonQ (NYSE: IONQ) announced that it has reached a definitive agreement to acquire substantially all of the operating assets of Qubitekk, Inc., a leading Vista, CA-based quantum networking company. As part of the transaction, the Qubitekk team will join IonQ to further enhance IonQ’s leading position in the quantum networking industry. IonQ anticipates closing the acquisition within the next six months, subject to the satisfaction of certain closing conditions.
Quantum networks are expected to become essential infrastructure, enabling critical applications especially in the defense, finance, and energy sectors. The technology enables multiple nodes to communicate via entangled qubits, offering ultra-secure communications, precise timing synchronization, a foundation for distributed quantum computing, and a transport layer for quantum sensing. Having designed and deployed the nation’s first commercially available quantum network in Chattanooga Tennessee, the EPB Quantum Network, Qubitekk has distinctive acumen in the quantum networking category.
From the start, IonQ has prioritized quantum networking as a key strategy for scaling its quantum computers. Specifically, IonQ’s architecture plans to use photonic interconnects to link multiple quantum computers together, creating a more powerful cluster. The years that IonQ has dedicated to developing this technology for its computing efforts have allowed IonQ to quickly advance its offerings in the quantum networking industry.
Once closed, the Qubitekk acquisition will represent a major addition to IonQ’s quantum networking capabilities and customer set. IonQ believes the transaction will contribute to near-term bookings and revenue opportunities, extending IonQ’s commercial leadership in quantum networking.
“Our acquisition of Qubitekk will mark a significant step in IonQ’s expansion into the quantum networking market, where IonQ will be a clear leader in both quantum networking and quantum computing,” said Peter Chapman, President and CEO of IonQ. “The combination of Qubitekk and IonQ will allow us to continue our momentum in quantum networking. Quantum networking and quantum computing are highly synergistic for IonQ. I expect that the quantum networking part of IonQ could be the first division to be cash flow positive.”
Qubitekk’s executive team and employee base including physicists, engineers, software developers, and others will join IonQ to further drive quantum networking efforts. The Qubitekk team joining IonQ includes Co-Founder and CEO Stan Ellis, Co-Founder and CTO Dr. Duncan Earl, Chief Revenue Officer Corey McClelland, and President Keith Clark.
The deal will also significantly expand IonQ’s quantum networking expertise and technology portfolio with 118 U.S. and international patents in the areas of quantum networking hardware and quantum network security and protection.
“Qubitekk is thrilled to be joining IonQ to capitalize on our early advantage in the quantum networking space,” said Stan Ellis, Co-Founder and CEO of Qubitekk. “We have admired IonQ as the pioneering quantum company, with powerful computing systems and a demonstrated commitment to quantum networking as critical infrastructure. Uniting Qubitekk with IonQ will allow us to pursue the quantum-enabled internet as a near-term reality.”
IonQ’s acquisition of Qubitekk follows closely on the heels of a series of recent quantum networking announcements from IonQ. In September, IonQ announced the largest known 2024 U.S. Quantum Contract Award of $54.5 million with United States Air Force Research Lab (AFRL) to design, develop and deliver quantum networking technology. Recently, IonQ demonstrated remote ion-ion entanglement as a key milestone towards scaling its compute across multiple quantum processors using photonic interconnects. Earlier this year, IonQ announced that it was selected by the Applied Research Laboratory for Intelligence and Security (ARLIS) for a quantum networking contract to design a first-of-its-kind, networked system for blind quantum computing. Blind quantum computing enables quantum computers to operate while remaining ‘blind’ to what information is being processed through them.
