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27 Feb 2025
Quantum computing firm signs deal to gain controlling stake in the Swiss quantum networking pioneer.
IonQ, the US-based startup specializing in laser-based quantum computing systems, has signed a deal that should see it acquire Switzerland’s ID Quantique by the end of this year.
A memorandum of understanding with major ID Quantique backer and Korean communications giant SK Telecom will see IonQ gain a controlling stake in the quantum key distribution (QKD) pioneer by way of an all-stock transaction.
Alongside that deal, IonQ expects to enter into a strategic partnership focused on quantum with SK Telecom, which has previously partnered with ID Quantique to build an 800 km-long quantum network in South Korea.
QKD pioneer
Established in 2001 as a spin-out from the University of Geneva, ID Quantique has since pioneered the development of quantum cryptography systems, which are designed to protect optical networks from hacking by even the most powerful quantum computers.
In 2018 SK Telecom acquired a major stake in the Swiss firm with an investment of $65 million, while an earlier deal had seen Moscow-based venture fund QWave Capital back ID Quantique with $5.6 million in 2013. Deutsche Telekom is another supporter.
By using single-photon transmission and physical properties such as polarization or phase, a QKD system can be used to send a secret key between two parties safe in the knowledge that any attempt to “crack” the network would immediately be made evident by a perturbation to the photon’s properties.
ID Quantique has worked with a number of major networking firms over the past two decades, including a quantum-safe network in Singapore and most recently an effort with Turkey’s Turkcell to complete what is thought to be the world’s first intercontinental QKD link, over a fiber-optic connection in Istanbul.
It is also involved in quantum computing efforts, for example a partnership with UK-based ORCA Computing to incorporate the Swiss company’s single-photon detection technology in ORCA’s latest photonic quantum computing system.
Photonic interconnects
ID Quantique’s co-founder and long-time CEO Grégoire Ribordy said that the IonQ deal would enable the firm to continue its journey providing quantum networking technology, adding:
“IonQ has been a pioneer in the quantum industry, developing powerful computing systems combined with dedication to quantum networking - vital infrastructure underpinning the entire global economy. We have long admired IonQ’s work, and know that the combination of IDQ and IonQ will be powerful, accretive, and impactful worldwide.”
IonQ, which recently announced collaborations with NKT Photonics and imec on laser and integrated photonics development, says it has “long recognized” that quantum networking is a key strategy to scale its quantum computers.
“IonQ's architecture intends to use photonic interconnects to create a more powerful computing cluster by networking multiple quantum computers together,” it pointed out.
“The years IonQ has spent developing this technology for its distributed computing efforts have allowed it to move quickly in advancing its quantum networking offerings.”
SK Telecom’s CEO Ryu Young-sang added: “Quantum technology is not an option but an essential element for the advancement of artificial intelligence (AI). SK Telecom will continue to make proactive investments and collaborations to become a leading company in the AI field.”
McKinsey’s quantum networking expectations
News of the ID Quantique acquisition arrived alongside two other developments at IonQ - the appointment of new CEO Niccolo de Masi and the firm’s latest financial results.
A physicist by training, de Masi is said to have raised more than $3 billion in equity in support of public and private companies he has led. In a statement announcing his arrival he said:
“As a longtime evangelist of the quantum industry, I believe wholeheartedly in IonQ’s mission and technology. I am honored to work with our industry-leading team to build upon the company’s momentum in 2025 and beyond.”
Reporting its full-year 2024 financial results, IonQ revealed that sales near-doubled on the prior year to $43 million. However the firm’s operating loss also ballooned to $232 million, from $158 million a year ago, with the latest balance sheet listing just over $300 million in short-term investments and other liquid assets.
Executive chairman Peter Chapman said of those results: “We had IonQ’s best year yet in 2024, exceeding the high ends of both our bookings and revenue guidance ranges and making truly significant technical strides.
“As we enter 2025, IonQ has a strong pipeline that we believe will enable us to lead in the era of commercial advantage. Last year, our rapidly expanding quantum networking business line closed three major networking contracts.”
He also pointed out a new report from market consultancy McKinsey saying that it expected the quantum networking industry to be worth $10-15 billion per year within the next decade.
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