Qubitekk's renowned team, technology, products, and patent portfolio to join IonQ
Acquisition to continue expansion of IonQ's trajectory into the quantum networking market
Today, 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.
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Wilson Sonsini Goodrich & Rosati is serving as legal counsel to IonQ.
About IonQ
IonQ, Inc. is a leader in quantum computing that delivers high-performance systems capable of solving the world's largest and most complex commercial and research use cases. IonQ's current generation quantum computer, IonQ Forte, is the latest in a line of cutting-edge systems, boasting 36 algorithmic qubits. The company's innovative technology and rapid growth were recognized in Fast Company's 2023 Next Big Things in Tech List and Deloitte's 2023 Technology Fast 500™ List, respectively. Available through all major cloud providers, IonQ is making quantum computing more accessible and impactful than ever before. Learn more at IonQ.com.
About Qubitekk
Qubitekk designs, builds, and integrates the hardware and software for quantum networks, precursors to the quantum-enabled internet, while championing the growth of a robust quantum ecosystem through education, advocacy, and collaboration. Qubitekk's comprehensive entanglement distribution technology is at the core of the Bohr-IV Metro Quantum Network solution deployed at EPB and utilized in its Quantum Network Essentials product line and secure network solutions being developed for drones, satellite communications, and the electric grid.
Co-founded by Dr. Duncan Earl, a nationally recognized pioneer in the field of practical quantum applications, Qubitekk has been recognized with an Edison Gold Award and R&D World's R&D 100 Award. Qubitekk's quantum technology is empowering the next generation of solutions for AI, machine learning, automation, sensing applications, cybersecurity, and secure communications. The company's growing list of partners and customers includes NASA, GE, Verizon, Juniper, the United States Department of Energy, and the United States Department of Defense. For more information, visit Qubitekk.com.
IonQ Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of the forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including the terms "accelerate,"advance," "aim," "believe," "benefit," "collaboration," "design," "enable," "exceed," "expect," "expected to," "intend," "next-generation," "will," "would," and other similar expressions are intended to identify forward-looking statements. These statements include those related to the anticipated closing of the transaction, the acquisition of Qubitekk customer contracts, IonQ's expansion into the quantum networking market, the expectation that the Qubitekk acquisition will contribute to IonQ's near-term bookings and revenue, the expected hiring of Qubitekk employees; the expansion of IonQ's expertise, capabilities and technologies, Qubitekk personnel joining IonQ, and IonQ's market position. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: the conditions for closing the transaction not being met, including the entry into certain contracts and amendments to contracts; changes in the competitive industries in which IonQ operates, including development of competing technologies; IonQ's inability to enter new markets and exploit new technologies; IonQ's ability to deliver on Qubitekk customer contracts; IonQ's inability to hire and maintain the services of Qubitekk personnel; IonQ's ability to implement its business plans, forecasts and other expectations, identify and realize partnerships and opportunities, and to engage new and existing customers. You should carefully consider the foregoing factors and the other risks and uncertainties disclosed in the Company's filings, including but not limited to those described in the "Risk Factors" section of IonQ's most recent Quarterly Report on Form 10-Q and other documents filed by IonQ from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and IonQ assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. IonQ does not give any assurance that it will achieve its expectations.
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