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First Pure-Play Quantum Computing Company Comes Public: What Investors Should Know About IonQ

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First Pure-Play Quantum Computing Company Comes Public: What Investors Should Know About IonQ

A quantum computing company backed by some of the largest technology companies is going public in a SPAC deal announced Monday morning.

The SPAC Deal: IonQ will be the first publicly traded pure-play quantum computing company with a merger with dMY Technology Group III (NYSE: DMYI).

The deal will give IonQ $650 million in gross proceeds. The deal includes a $350 million PIPE that includes investments from Fidelity, Silver Lake, Hyundai and Kia Corporation.

The deal values IonQ at a pro forma implied market cap of $2 billion.

Shares of IonQ will trade as ticker "IONQ" on the NYSE if the deal is completed. Current dMY Technology Group III shareholders will own 15.1% of the new company.

Existing investors in IonQ include Google Ventures, owned by Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon.com (NASDAQ: AMZN), Lockheed Martin (NYSE: LMT), HP Inc (NYSE: HPQ), Airbus and Samsung.

Related Link: 10 SPACs Trading Under $11 For Investors To Consider In 2021

About IonQ: IonQ is seeking to build the world’s best quantum computers to solve the world’s most complex problems, transforming business, society and the planet for the better, according to the presentation.

The company believes the 21st century will be defined by quantum computing. Problems like how to live sustainably on our planet, how to cure diseases and how to efficiently move people or goods are problems listed for quantum computing.

Growth Ahead: IonQ is the only quantum computing company to be available on both Amazon Web Services and Microsoft Azure.

The company sees a market opportunity of $65 billion by 2030.

IonQ competes with companies like Google, Honeywell International (NYSE: HON) and International Business Machines (NYSE: IBM). IonQ says its quantum system is 32,000 times more powerful than competitors.

Financials: The company is forecasting revenue of $5 million in fiscal 2021 and $15 million in fiscal 2022. The company will see a ramp up of revenue beginning in fiscal 2025 with an estimate of $237 million.

Revenue is forecasted to grow at a compounded annual growth rate of 150% from fiscal 2021 to fiscal 2025.

The company is forecasting positive EBITDA in fiscal 2025.

Price Action: Shares of dMY Technology Group III are down 6% to $12 in pre-market trading.

 

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