IonQ to Acquire Elisity for $1.3bn to Bolster Quantum-Safe Network Security
Quantum computing firm IonQ has agreed to buy network security startup Elisity in an all-stock deal, aiming to protect infrastructure from future quantum threats.
Key points
- IonQ will acquire Elisity for up to $1.3bn in stock, with $150mn contingent on performance milestones.
- Elisity provides software that maps corporate networks and restricts access permissions to stop lateral movement.
- The deal aims to integrate quantum-resistant security features into existing enterprise network protection tools.
Organisations relying on traditional encryption may face new risks from advanced computing power, prompting quantum firm IonQ to expand its defensive capabilities. The Maryland-based company announced on Monday that it has agreed to acquire cybersecurity startup Elisity in an all-stock transaction valued at up to $1.3bn. According to reports from The Next Web and SiliconANGLE, this move is designed to help enterprises guard against attacks aided by artificial intelligence and future quantum machines.
The acquisition price includes $150mn in performance incentives that depend on Elisity meeting specific business milestones. IonQ, which is worth approximately $16bn, plans to close the deal by the end of the year, pending regulatory approval. This transaction follows IonQ’s recent purchases of chipmaker SkyWater for $1.8bn in January and UK startup Oxford Ionics for $1.1bn last year, signalling a broader strategy to consolidate hardware and security assets.
What we know
Elisity, founded in 2019, specialises in software that prevents attackers and ransomware from moving laterally through a company’s internal network. According to SiliconANGLE, the platform automatically maps out devices within a corporate environment, identifying workstations, servers and specialised endpoints like factory sensors. It collects technical data about each device, including manufacturer details and user access logs, to build a comprehensive view of the network topology.
Using this gathered information, Elisity identifies cybersecurity gaps, particularly devices with overly broad access permissions. For instance, the software can detect if a production line computer is accessible from outside the factory where it is installed. The platform then generates safer access policies for these vulnerable devices. A built-in simulation tool allows administrators to test these new policies for bugs before deploying them to production environments, ensuring that legitimate operations are not disrupted.
IonQ states that Elisity has more than 100 customers, including a growing number of Fortune 500 firms and hospitals. The cybersecurity firm reports that its sales and customer base doubled in the past year, with zero customer churn. Elisity chief executive James Winebrenner will continue to run the business. IonQ chief executive Niccolo de Masi said the combined entity would be well positioned to help customers protect critical infrastructure during the transition to the quantum era.
IonQ already sells tools built to resist quantum attacks and has constructed quantum-safe national networks in Switzerland, Poland, Romania and Slovakia. The company plans to extend Elisity’s vulnerability detection features to specifically spot and fix quantum-related security risks. These risks primarily affect the encryption algorithms organisations use to protect data, which hypothetical large-scale quantum computers could potentially bypass.
Defender's checklist
- Review current network access policies to identify devices with overly broad permissions that could allow lateral movement.
- Map all endpoints, including specialised hardware like factory sensors, to ensure they are accounted for in security monitoring.
- Test new security policies in a simulated environment before rolling them out to production systems to prevent operational disruption.
- Prioritise post-quantum cryptography initiatives to secure existing assets against future decryption threats from advanced computing.
Background: Post-quantum cryptography
Post-quantum cryptography replaces standard encryption algorithms with mathematical problems resistant to quantum computing attacks. It protects long-term data but increases computational load and key sizes. Adopt it only for sensitive, long-lived data or systems with long upgrade cycles, as it offers little benefit for short-lived sessions.
Read the full guide: Post-Quantum Cryptography: Real Benefits and Hidden Costs
What to do and how to stay safe: IonQ
- Audit your network to identify all connected devices, including IoT sensors and legacy systems, to understand your full attack surface.
- Evaluate whether your current encryption standards are vulnerable to potential future quantum computing advances.
- Implement strict access controls that limit device connectivity to only what is necessary for business operations.
- Monitor for vendor announcements regarding quantum-resistant updates and plan to integrate them once available.
General security guidance from the TechWire Beat newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
How much is IonQ paying for Elisity?
IonQ is acquiring Elisity for up to $1.3bn in stock, with $150mn of that amount contingent on Elisity meeting certain business milestones.
What does Elisity software do?
Elisity software maps corporate networks to identify devices and their access permissions, then generates safer access policies to prevent attackers from moving laterally.
When is the deal expected to close?
The all-stock deal is set to close by the end of the year, once regulators sign off on the transaction.
