Intel to Pay About $1.9 Billion for Quantum Software Maker Classiq, Plus Up to $350 Million in Milestones

Intel has agreed to acquire Classiq, an Israeli quantum-computing software company. Intel disclosed in its third-quarter report (Form 10-Q) that the base price is about $1.9 billion, plus up to $350 million in payments tied to performance milestones, taking the total consideration to about $2.25 billion. Announced on October 26, the deal is expected to close in the first half of 2027 and is the largest quantum-computing acquisition on record.

Filing spells out price; Intel may pay in cash or shares

Israeli financial outlet Calcalist reported that Intel disclosed in its quarterly filing with the U.S. Securities and Exchange Commission that it had signed a definitive agreement to acquire 100 percent of Classiq for about $1.9 billion, subject to customary purchase-price adjustments, plus up to $350 million in contingent consideration depending on specified performance milestones. The filing does not disclose the milestones or how much of the contingent payment Intel expects to pay. It also says Intel may settle the price in cash or Intel shares. Calcalist noted Intel's stock has fallen more than 40 percent since the deal was announced.

What Classiq does, and why Intel wants it

Founded in Tel Aviv in 2020, Classiq builds an operating system and software tools for quantum computers, letting developers write quantum programs without working directly with the underlying hardware. Its customers include BMW and AT&T. The company has raised about $200 million, with IonQ, AMD and Qualcomm Ventures joining a later funding round. After the deal closes, Classiq will become Intel's global development centre for quantum computing. Intel said the acquisition would combine Classiq's software with its quantum-hardware work — based on silicon spin qubits — into a full-stack quantum platform. Intel's quantum team numbers about 70 people.

Largest quantum deal on record, pending regulatory approval

Globes reported that Classiq still holds about $100 million in cash, putting the effective price at about $2.2 billion, while Forbes Israel put the deal's value at about $2.3 billion. On any measure, it is the largest acquisition ever in quantum computing, well ahead of last year's record — IonQ's roughly $1 billion purchase of Britain's Oxford Ionics. Intel chief executive Lip-Bu Tan invested in Classiq in 2022 and recused himself from discussions on the deal, according to reports. The transaction is subject to regulatory approvals and is expected to close in the first half of 2027; until then the two companies will operate separately, and Classiq's software will remain compatible with other makers' quantum hardware.

(Sources: Intel's SEC Form 10-Q; Calcalist; Globes; TechInAsia; Forbes Israel.)