IonQ (IONQ) has acquired a controlling stake in ID Quantique (IDQ), a provider of quantum-safe networking and quantum detection systems. This move bolsters IonQ’s position in offering end-to-end quantum solutions and expands its global reach in secure communications. Importantly, the news comes ahead of IONQ’s Q1 earnings report, due on May 7.
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It must be noted that IDQ has a strong history of setting up secure quantum networks, including projects in Singapore and South Korea, as well as within the European Union’s quantum communications system.
Here’s How the Deal Benefits IONQ
The acquisition broadens IonQ’s product offerings to include IDQ’s quantum key distribution (QKD) systems, quantum random number generators (QRNGs), and single-photon detectors.
Further, IonQ gains access to IDQ’s intellectual property portfolio, comprising nearly 300 patents, bringing IonQ’s total to over 900 patents in quantum technologies.
Importantly, by joining forces, IONQ’s powerful quantum computing and IDQ’s secure quantum networks will help build the foundation of the Quantum Internet. Investors must note that the Quantum Internet is a future network that uses quantum tech to make data ultra-safe and transfer data instantly.
IonQ on Path to become an “800-Pound Gorilla of Quantum”
IonQ’s CEO, Niccolo De Masi, had earlier stated that the company aims to become the “800-pound gorilla” of quantum computing.
Thus, the IDQ deal aligns with the company’s growth strategy. In addition to this acquisition, IonQ recently partnered with EPB of Chattanooga to establish a $22 million quantum computing center, which will house its Forte Enterprise quantum computer and further advance quantum research.
Moreover, IonQ is expanding its global footprint. Last month, IonQ signed a distribution agreement with Toyota Tsusho, marking its official entry into the Japanese market. The deal aims to speed up quantum computing adoption in Japan.
Analysts’ View Ahead of IONQ’s Q1 Earnings
Ahead of Q1 results, analysts expect IonQ to report a loss per share of $0.26, wider than the loss of $0.19 per share in the prior-year quarter. Also, the company’s revenue is expected to decrease by about 1% to $7.51 million in the first quarter.
While the projections show year-over-year decline, Top-rated analyst Richard Shannon from Craig-Hallum remains optimistic about IONQ stock. Yesterday, he reiterated a Buy rating on the stock.
Is IonQ a Good Stock to Buy?
On TipRanks, IONQ stock has a Strong Buy consensus rating based on four Buys and one Hold assigned in the last three months. The average IonQ price target of $39.50 suggests an upside potential of 34.26% from its current price.
