Publicly traded quantum computer supplier IonQ has announced plans to acquire cybersecurity startup Elisity in a $1.3 billion all-stock deal. The purchase price includes $150 million in performance incentives tied to business milestones, with the transaction expected to close by the end of the year.
Elisity’s Network Security Platform
Elisity provides a software platform designed to automatically map devices across a corporate network, including employee workstations, servers, and specialized endpoints like factory sensors. The system collects technical data, such as the manufacturer and user access details, to identify cybersecurity gaps. It specifically targets devices with overly broad access permissions, such as a production line computer that can be reached from outside the factory.
To address these vulnerabilities, the platform automatically generates safer access policies. Administrators can use a built-in simulation tool to test these new policies for bugs before deploying them to production. The software can also adjust security permissions if a device’s access requirements change over time.
Expanding Quantum Security
Following the close of the IonQ acquisition, the company plans to expand Elisity’s vulnerability detection capabilities to identify and fix quantum-related security risks. These risks primarily threaten the encryption algorithms organizations currently use to protect data, which a hypothetical large-scale quantum computer could bypass.
IonQ already competes in the cybersecurity space following its purchase of Swiss startup ID Quantique last year. ID Quantique develops physical data encryption devices that use quantum mechanical phenomena, including a post-quantum cryptography (PQC) appliance called Solteris that can withstand quantum cyberattacks. The subsidiary also offers devices that generate random numbers, which many encryption algorithms use as ciphers.
IonQ's core business centers on quantum hardware, having debuted its 256-qubit Superion 256 system last month. The computer suspends charged particles in a vacuum and uses standard chipmaking equipment for its control device, which IonQ claims is more practical than using highly complicated, bulky lasers.
Cross-Selling and Market Strategy
IonQ intends to cross-sell its products to Elisity’s customer base and vice versa. Elisity currently serves more than 100 clients across verticals such as healthcare, financial services, and manufacturing. As part of its go-to-market strategy, IonQ also plans to prioritize the public sector.
Elisity will bring proven enterprise policy enforcement scale and deployment experience to our quantum security strategy and will give IonQ a strong growth platform to serve customers and create value for our shareholders.
Niccolo de Masi, Chief Executive, IonQ
