IonQ, Inc. (IONQ) said Monday it agreed to acquire cybersecurity company Elisity Inc. in an all-stock deal valued at up to $1.3 billion, expanding its quantum security business.

Following the announcement, the stock fell nearly 10%.

The acquisition will combine IonQ's post-quantum cryptography and quantum key distribution capabilities with Elisity's Zero Trust security platform.

The companies aim to help enterprises and government agencies defend against current cyberattacks and emerging quantum computing threats.

As of June 30, 2026, IonQ held $3.0 billion in cash, cash equivalents and investments, including approximately $2.12 billion in cash and short-term investments.

Its pro forma cash position stood at approximately $2.0 billion after accounting for the SkyWater Technology acquisition.

Elisity Deal Expands Cybersecurity Reach

Elisity operates in the microsegmentation market, which IonQ estimates exceeds $10 billion. Its technology limits unauthorized access and helps prevent cyberattacks from spreading across networks.

The company has more than 100 global customer deployments and has doubled its revenue and customer base annually, according to IonQ. It also reported zero customer churn among deployed customers.

Elisity's IdentityGraph platform uses identity, asset and risk data to manage access for users, devices, workloads and AI agents.

IonQ plans to integrate these capabilities with its quantum security products to help customers strengthen existing defenses while preparing for future threats.

The acquisition also aligns with federal initiatives to accelerate the adoption of post-quantum cryptography.

IonQ Sees Cross-Selling Opportunities

IonQ expects the deal to expand its enterprise and government customer base while creating opportunities to sell complementary cybersecurity products.

The company reported 40% year-over-year growth in multiproduct revenue during the second quarter of 2026.

IonQ CEO Niccolo de Masi said Elisity would strengthen the company's quantum security strategy by adding established enterprise security technology and deployment expertise.

Following the acquisition, Elisity will continue operating under its existing leadership, including CEO James Winebrenner.

Deal Expected To Close In Fourth Quarter

The transaction includes up to $150 million in performance-based earnout payments.

IonQ will determine the number of shares issued using a 20-day volume-weighted average stock price, subject to a range of $33.07 to $49.61 per share.

The companies expect to close the transaction in the fourth quarter of 2026, subject to regulatory approval and customary closing conditions.

IONQ Price Action

IONQ Price Action: IonQ shares were down 9.38% at $36.14 at the time of publication on Monday, according to market data.