Quantum computer maker IonQ to buy cybersecurity startup Elisity for $1.3B

IonQ, a publicly traded company that manufactures quantum computers, has announced it will purchase Elisity, a cybersecurity startup, for $1.3 billion. The deal includes $150 million in performance incentives that depend on Elisity meeting specific business milestones. The acquisition is expected to be completed by the end of the year.

IonQ's primary product is a 256-qubit quantum computer named Superion 256, which employs ions as its fundamental unit of information. These ions are suspended in a vacuum and encoded with data. The quantum computer differentiates itself from competing technologies by utilizing control devices made with standard chip manufacturing equipment, making it more practical and less bulky than alternatives that typically rely on intricate lasers.

In addition to its quantum computing business, IonQ has entered the cybersecurity market through its acquisition of Swiss firm ID Quantique last year. ID Quantique developed physical data encryption devices that leverage quantum mechanical phenomena to safeguard customer data. IonQ's acquisition of Elisity will expand its cybersecurity portfolio to cover more use cases.

Elisity provides a software platform that automatically identifies and maps devices within a corporate network, including workstations, servers, and specialized endpoints such as factory sensors. The platform collects technical data on each device, allowing it to pinpoint cybersecurity vulnerabilities, particularly devices with excessively broad access permissions.

Elisity can generate new, more secure access policies for these vulnerable devices. Its built-in simulation tool permits administrators to test these policies for errors before deployment in production. Additionally, if a device's access requirements evolve over time, the software can adapt its security permissions accordingly.

Following the acquisition, IonQ intends to enhance Elisity's vulnerability detection features by incorporating capabilities to identify and rectify quantum-related security risks. These risks primarily concern encryption algorithms that organizations employ to protect their data. A hypothetical large-scale quantum computer could potentially exploit these algorithms.

Post-quantum cryptography (PQC) technologies, developed by ID Quantique, can withstand attacks from quantum computers. IonQ will collaborate with Elisity to integrate these capabilities, catering to customers and generating value for shareholders.