(Bloomberg) — IonQ is integrating with DMY Technology Group Inc. in advanced talks. III, establishing one of the first public quantum-computing firms, according to people with knowledge of the matter.
The merged business is estimated to be worth approximately $2 billion and an agreement is expected to be announced in the coming weeks, said one of the individuals, who asked not to be recognized because the matter is private. Silver Lake, MSD Partners, Bill Gates’ Breakthrough Energy and a Hyundai Motor Co. affiliate are in talks to take part in a so-called public equity strategic private investment, or PIPE.
The SPAC is considering raising additional equity from institutional investors and a total of about $300 million is set for new equity raised from strategic and institutional investors, said one of the individuals. Current IonQ investors are supposed to roll into the deal their equity, one of the individuals said.
As with any contract that has not been finalized, changing terms or talks will fall apart. IonQ and DMY members declined to comment. Silver Lake and MSD Partners spokesmen declined to comment, and Hyundai and Breakthrough Energy Projects representatives did not respond to requests for comment immediately.
The SPAC, led by Harry You, Chairman, and Niccolo De Masi, Chief Executive Officer, raised $300 million in November and said it would set a consumer technology target at the time.
IonQ, based in College Park, Maryland, was founded by Chris Monroe and Jungsang Kim in 2015 and is led by Peter Chapman, the CEO. Amazon Web Services, Samsung Catalyst Fund, GV (formerly known as Google Ventures), NEA, Lockheed Martin Corp., Airbus Ventures and Robert Bosch Venture Capital GmbH are among its investors. In October, IonQ unveiled what it identifies as the most powerful quantum computer in the world.
As the next frontier of science, Quantum has long been touted. Such machines will be capable of immediately simulating and recognizing phenomena in the real world and providing the basis for unhackable systems. Intel Corp. and Microsoft Corp. are both working to advance quantum computing, among other firms. For example, technology has potential consequences for the production of new materials or the production of new drugs.