IonQ, a US-based quantum computing company, has agreed to acquire UK startup Oxford Ionics in a $1.08bn deal.

The acquisition, comprising approximately $1.07bn (£800m) in IonQ shares and $10m (£7m) in cash, will integrate IonQ’s quantum hardware and software with Oxford Ionics’ quantum chip technology.

The transaction is expected to conclude in 2025, subject to receipt of regulatory approvals.

The combined company plans to develop systems with 256 physical qubits at 99.99% accuracy by 2026.

By 2027, they aim to exceed 10,000 physical qubits with logical accuracies of 99.99999%.

By 2030, they anticipate reaching two million physical qubits, achieving logical qubit accuracies surpassing 99.9999999999%, the companies said in a joint statement.

Oxford Ionics founders, Dr Chris Ballance and Dr Tom Harty, will remain with IonQ post-acquisition, continuing their work on quantum technology in the UK.

The combined entity also intends to expand its workforce in Oxford to enhance the UK’s leadership in quantum computing.

IonQ CEO Niccolo de Masi said: “We are pleased to welcome Oxford Ionics founders Dr Chris Ballance and Dr Tom Harty, and the rest of the Oxford Ionics team to IonQ.

“Their groundbreaking ion-trap-on-a-chip technology will accelerate IonQ’s commercial quantum computer miniaturisation and global delivery. Our combined path to millions of qubits by 2030 will help ensure unit economics, scale, and power as quantum computing rapidly evolves.”

This development follows IonQ’s recent moves in the quantum computing and networking sector, including the purchase of Lightsynq and the prospective acquisition of Capella.

In November 2024, IonQ agreed to acquire the complete operating assets of California-based Qubitekk.

Through the acquisition of Qubitekk, the company adds 118 US and international patents in the areas of quantum networking hardware and quantum network security and protection.