Intel Buys Israeli Startup Classiq for $2.3 Billion, Benefiting 150 Employees

Intel is acquiring Israeli startup Classiq for approximately $2.3 billion, a deal expected to yield significant financial gains for the company's 150 employees. These employees collectively hold about 10% of Classiq's shares, valued at roughly $230 million at the acquisition price. The distribution of this wealth will vary among employees based on their individual stock and option holdings.

In addition to the share value, Intel has allocated over $100 million in retention bonuses for Classiq employees, underscoring the company's desire to retain the talent that developed its technology. This brings the total value allocated to Classiq's employees, including stock and retention packages, to over $330 million.

Classiq, founded in 2020, is a relatively small startup with around 150 employees. Its CEO and founder, Nir Minervi, and VP of Product and founder, Amir Naveh, are graduates of the IDF's Talpiot program, a background shared by many other Classiq employees. The third founder, Dr. Yehuda Naveh, Amir's father, serves as the company's CTO and previously held a senior position at IBM's development center in Israel.

Despite its annual revenues still in the tens of millions of dollars and not yet reaching $100 million per year, Classiq's acquisition marks one of the largest Israeli tech deals in recent years. The company has developed software for designing and operating applications on various types of quantum computers. Its client list includes major corporations such as BMW, Rolls-Royce, HSBC, Deloitte, Toshiba, and Citi.

The acquisition will also bring substantial returns to Classiq's founders and investors. Each of the three founders is projected to receive between $80 million and $100 million. Entree Capital, the largest shareholder and an early investor, is expected to receive over $300 million from the deal.