IonQ shares fall as quantum computing group agrees $1.3bn cybersecurity deal

IonQ (NYSE:IONQ) shares fell 5% after the quantum computing company agreed to acquire cybersecurity firm Elisity in an all-stock deal valued at up to $1.3 billion, first reported by The Wall Street Journal.

The transaction includes up to $150 million in performance-based earnouts, with the number of IonQ shares issued determined by a reference price ranging from $33.07 to $49.61 per share.

The acquisition will combine IonQ's post-quantum cryptography and quantum key distribution capabilities with Elisity's enterprise security platform, helping businesses and government organisations defend against existing and emerging cyber threats.

IonQ chief executive Niccolo de Masi told the Wall Street Journal that increasingly powerful artificial intelligence and quantum computing systems would create greater cybersecurity risks.

The threat includes so-called Q-Day, the point at which quantum computers could become capable of breaking widely used encryption methods that protect sensitive information.

Elisity, founded in 2019, develops software designed to prevent cyber attackers and ransomware from spreading across corporate networks, with customers including healthcare companies and hospitals.

The company has more than 100 customer deployments globally and has doubled its revenue and customer base year-on-year while retaining customers across its deployed accounts.

Elisity chief executive James Winebrenner is expected to remain in the role after the acquisition, which IonQ expects to complete in the fourth quarter of 2026, subject to regulatory approval.

The deal follows IonQ's agreement to acquire semiconductor manufacturer SkyWater Technology for about $1.8 billion, as it expands beyond quantum computing hardware into related technologies and services.