IonQ announced it will become a public company in a definitive merger agreement with dMY Technology Group III, a Special Purpose Acquisition Company. The transaction is expected to close in a few months after a review by the SEC and a shareholder vote. The post transaction equity value of the company is estimated to be about $1993 million. Of this amount, about 64% or $1275 will be owned by IonQ pre-transaction shareholders, $300 million in cash from a previous public offering of dMY III, $350 million in cash from a private Private Investment in Public Equity (PIPE), and $67 million by the founders of dMY III. Investors in the PIPE include Fidelity Management & Research Company LLC, Silver Lake, Breakthrough Energy Ventures, MSD Partners, L.P., Hyundai Motor Company and Kia Corporation, and key institutional investors.
IonQ will become the first pure-play hardware company to go public, although Quantum Computing Inc., a quantum software company, also became public traded through a 2018 refocusing and name change of a previously public company called Innovative Beverage Group Holdings. There are many other public companies that have engaged in quantum activities, but their quantum divisions still represent a tiny fraction of their overall company revenue.
IonQ and dMY have posted a detailed investor presentation and conference call recording. These show the company has a revenue projection of $5 million in 2021 with a CAGR of 150% for the next five years. It also shows the company projects reaching profitability in 2025 and cash-flow breakeven in 2027. Since they will start with over $650 million in the bank, IonQ will not need any further financing before they hit cash-flow breakeven if everything goes as planned. You can view the presentation with this information and more on the dMY website at here. You can also view the news release about the transaction on the IonQ website here. Also available is a write-up and analysis of IonQ’s hardware roadmap that we published on this website last year.
March 8, 2021