IonQ (IONQ) has received the green light from the UK Investment Security Unit (ISU) to proceed with its acquisition of Oxford Ionics. The approval followed a detailed national security review under the UK’s National Security and Investment Act. With this deal, the company will be able to expand its quantum computing footprint globally. Following the news, IONQ stock jumped 15% on Friday morning.
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Oxford Ionics, a UK-based leader in trapped-ion quantum hardware, is known for its chip-based qubit technology, which combines high fidelity with scalable semiconductor processes.
Interestingly, this acquisition is the latest in a series for IonQ, which has previously acquired Qubitekk, Lightsync Technologies, Capella Space Corporation, and ID Quantique.
Brief Background
The deal was first announced in June and is valued at $1.065 billion in IonQ common stock and $10 million in cash.
It brings together IonQ’s quantum systems with Oxford Ionics’ advanced ion-based hardware to build more powerful quantum computers. Importantly, Oxford Ionics holds world records in several quantum performance metrics, including gate fidelity. Also, its semiconductor chip-based traps are designed for scalability and miniaturization.
The combined company has set ambitious technical milestones, targeting the development of quantum systems with 2 million physical qubits by 2030.
Conditions for Deal Approval
While the UK government approved the deal, it imposed strict conditions to safeguard domestic capabilities. Oxford Ionics’ hardware and core operations must remain in the UK, including its staff, intellectual property, and manufacturing capacity.
Future versions of its quantum hardware will be reviewed by UK authorities to ensure they stay safe and reliable for use in defense, cybersecurity, and advanced tech.
Is IonQ a Good Buy?
Turning to Wall Street, IONQ has a Strong Buy consensus rating based on six Buys and two Holds assigned in the last three months. At $51.14, the average IonQ stock price target implies 5.45% downside risk.
