Oxford university quantum computing spinout snapped up in $1.1BN deal

One of the UK’s leading quantum computing startups is to be acquired by a US peer in a $1.075bn deal.

Quantum computing can solve problems too difficult for normal computers and makes it possible to carry out complex calculations very quickly.

Oxford Ionics, which was spun out of Oxford University, has developed a chip that can be mass-produced, meaning the world's first useful quantum computers could be built in a few years. 

Microsoft and Alphabet have also announced chip advancements, as intensity around quantum computing heats up.

US quantum computing outfit IonQ, which has a market value of nearly $10bn, today (Monday) agreed to buy Oxford Ionics, founded in 2019, in a a $1.075bn all-stock deal. The acquisition is expected to close this year.

In a press release, the companies said they “expect to benefit from the other’s complementary technologies, deep expertise, and IonQ’s global resources and established customer base”.

The quantum computing market is projected to create up to $850bn of global economic value by 2040, according to Boston Consulting Group.

Both Oxford Ionics founders, doctor Chris Ballance and doctor Tom Harty, are expected to remain with IonQ after the acquisition is completed, Oxford Ionics said.

The combined entity also plans to expand its workforce in Oxford to further develop the UK's position as a leader in quantum computing, the press release added.

The combined company expects to maintain all existing customer relationships, including government partnerships in both the UK and US, Oxford Ionics said.

Balance said: “At Oxford Ionics, we have not only pioneered the most accurate quantum platform on the market – we have also engineered a quantum chip capable of being manufactured in standard semiconductor fabs.

"We look forward to integrating this innovative technology to help accelerate IonQ’s quantum computing roadmap for customers in Europe and worldwide.”