IonQ to acquire cybersecurity company Elisity in deal valued at up to $1.3 billion
IonQ (NYSE: IONQ), a quantum computing company, announced on Monday, October 12, 2026, that it has agreed to acquire Elisity, a Zero Trust security company, in an all-stock transaction valued at up to $1.3 billion. IonQ shares fell more than 9% in afternoon trading on October 12, according to CNBC.
Deal terms
The total value of up to $1.3 billion includes up to $150 million in earnouts tied to the performance of the Elisity business. The number of IonQ shares to be issued will be set at closing, based on IonQ's 20-trading-day volume-weighted average share price. According to IonQ, the price used for this calculation is capped at $49.61 per share and has a floor of $33.07 per share.
The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions, including regulatory approval. Elisity will continue to operate under its current leadership, including chief executive James Winebrenner.
About Elisity
Elisity was founded in 2019. Its software is designed to stop attackers and ransomware from moving through an organisation's network. Its IdentityGraph product brings together identity, device and risk data to decide which users and devices can access which resources, and a software policy layer enforces these rules across the network. This approach is often called microsegmentation.
According to IonQ, Elisity has more than 100 deployments worldwide, including a growing number of Fortune 500 customers. IonQ said Elisity has roughly doubled its revenue and customer base year over year, but it did not disclose Elisity's revenue.
Why IonQ is buying Elisity
IonQ said the deal combines its post-quantum cryptography and quantum key distribution offering with Elisity's Zero Trust platform. Post-quantum cryptography refers to encryption methods designed to remain secure even if powerful quantum computers are developed in the future. IonQ said the combination is intended to address both current cyber threats and future risks related to quantum computing.
The company also said the deal gives it access to Elisity's enterprise customers and creates opportunities to sell more products to the same customers. IonQ plans to extend Elisity's IdentityGraph with information about the encryption used across a customer's systems.
Previous acquisitions
IonQ has made several acquisitions in recent years. In its announcement, chief executive Niccolo de Masi referred to the earlier acquisition of SkyWater Technology, which expanded IonQ's chip design, fabrication and packaging capabilities.
Market reaction
IonQ shares fell more than 9% in afternoon trading on October 12, according to CNBC. Market reports linked the decline to concerns about dilution, because the deal will be paid in newly issued IonQ shares. Other quantum computing stocks, including D-Wave and Rigetti, also traded lower on the day, according to 24/7 Wall St.
What is an all-stock deal?
In an all-stock acquisition, the buyer pays with its own shares instead of cash. This preserves cash, but increases the number of shares outstanding, which reduces existing shareholders' percentage ownership. The final value of the deal can change with the buyer's share price.
Risks and uncertainties
The transaction may not be completed on the expected terms or timetable. The final number of shares issued depends on IonQ's share price before closing. The earnout depends on Elisity's future performance. Combining businesses in different technology areas can be complex, and expected cross-selling benefits may not materialise. Quantum computing stocks can be highly volatile.
What this means for investors
For Investing.one users following IONQ, the acquisition, the number of shares issued at closing and Elisity's future performance may be relevant. The share price move described above reflects a single trading session and may not continue.
Sources
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