Shares of IonQ Inc. (NYSE: IONQ) increased notably on Tuesday in response to the company revealing plans to acquire SkyWater Technology Inc. (NASDAQ: SKYT), a U.S.-based chip manufacturer. The acquisition, announced on Monday, is valued at roughly $1.8 billion and is designed to strengthen IonQ's capabilities in quantum technology through vertical integration and enhanced manufacturing control.
The terms of the acquisition specify that IonQ will purchase SkyWater shares at $35 apiece. SkyWater shareholders will receive a combination of $15 in cash and $20 in IonQ shares per share held. Consequently, after the deal closes, SkyWater will hold an ownership stake ranging from 4.8% to 6.7% in IonQ, depending on final share calculations.
IonQ had $1.5 billion in cash and cash equivalents as of the third quarter ending September 30, equipping the company with strong financial resources to pursue this transaction. The acquisition timeline anticipates closure in the second or third quarter of 2026, contingent on obtaining necessary shareholder approvals and regulatory clearance.
This strategic move aims to create a fully vertically integrated quantum platform. Such integration is targeted at shortening production timelines and reducing manufacturing costs. Post-acquisition, SkyWater will retain its existing operating name and will continue functioning as a wholly owned subsidiary. Leadership continuity is guaranteed with SkyWater CEO Thomas Sonderman maintaining his role and reporting to IonQ Chairman and CEO Niccolo de Masi.
Industry commentary provides further context. Peter Peng of JPMorgan reaffirmed a Neutral rating for IonQ with a price target of $47. Peng described the acquisition as strategically sound, highlighting it as accelerating IonQ's technology and product roadmap. He emphasized that the deal enhances vertical integration benefits and strengthens cost efficiencies within the full-stack quantum platform approach.
The analyst also indicated that the acquisition could reduce the development cycle time for IonQ's 256-qubit chip from nine months to just two months, a substantial improvement in development velocity. This reduction has direct implications for IonQ’s competitiveness and ability to innovate.
IonQ has pre-announced that its full-year 2025 revenue is expected to align with or exceed the upper portion of the company’s earlier forecasted range of $106 million to $110 million, signifying solid revenue performance ahead of the acquisition close.
Additionally, the acquisition is projected to strengthen IonQ’s positioning within government and defense sectors, as SkyWater Technology holds a DMEA Category 1 trusted accreditation. This credential is significant for security-sensitive markets and could open up expanded opportunities for IonQ in these domains.
At the time of reporting, IonQ stock was trading 3.06% higher at $44.69. SkyWater Technology shares also reflected positive momentum, trading at $33.45, up 3.40%, according to market data.