GlobesTech08:00

Intel Buys Israeli Quantum Computing Firm Classiq for $2.2 Billion

By אסף גלעד

Translated & summarized from Globes by baba

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Intel has acquired the Israeli quantum computing company Classiq for $2.2 billion. The deal provides a significant exit for founders, investors, and employees, with founders Yehuda and Amir Naveh expected to receive around $200 million. Classiq's 150 employees could share up to $450 million through stock options. The acquisition will establish Classiq as Intel's global quantum computing development hub.

The story in 5 lines · by baba

Intel acquired Israeli quantum computing firm Classiq for $2.2 billion.
Founders Yehuda and Amir Naveh are set to receive approximately $200 million.
Classiq's 150 employees may share up to $450 million from stock options.
Major investors like Entree Capital and Team8 will see significant returns.
Classiq will become Intel's global quantum computing development center.

Intel Buys Israeli Quantum Computing Firm Classiq for $2.2 Billion — Editorial illustration generated by baba News, not a photograph of the event.

Intel has acquired the Israeli quantum computing company Classiq for $2.2 billion, a deal that marks a significant milestone for the quantum computing industry and a substantial exit for the company's stakeholders. The acquisition price reflects a $2.3 billion payment from Intel, offset by Classiq's $100 million cash reserve. Classiq was founded over six years ago by CEO Nir Minervi and co-founders Yehuda Naveh, who serves as CTO, and his son Amir Naveh, who is the Chief Product Officer. The Naveh father and son duo, holding approximately 9% of the company's shares, are expected to personally receive around $200 million, while Minervi holds about 3.5%.

Classiq's approximately 150 employees are also set to benefit significantly from the acquisition, holding options for 15-20% of the company's equity. This could result in them sharing up to $450 million, averaging about $3 million per employee. Major investors poised for substantial returns include venture capital firms Entree Capital and Team8, along with The Phoenix Group. Entree Capital, holding about 15%, is expected to gain around $330 million; Team8, with 8%, anticipates approximately $180 million; and The Phoenix Group, holding 7%, stands to receive over $150 million.

A notable aspect of the deal involves Intel CEO Lip-Bu Tan, who had previously invested in Classiq personally before taking the helm at Intel. Sources close to Classiq indicate Tan abstained from participating in the acquisition discussions. The exact amount of his personal investment and current holdings are undisclosed, leaving his personal profit from this exit uncertain. However, his prior connection to Classiq raises questions about how senior executives' past investments intersect with their later business decisions.

Upon completion of the deal, Classiq is slated to become Intel's global development center for quantum computing, positioning Israeli technology at the forefront of a critical strategic race in the tech industry.