One of the biggest Israeli tech exits of the year comes from a field that until recently was considered science fiction. Intel announced a definitive agreement to acquire Classiq, an Israeli quantum computing software company, for about $2.3 billion in cash and stock. According to Globes, net of the cash on the company's balance sheet, the effective purchase price is about $2.2 billion. The deal is subject to regulatory approvals and is expected to close in the first half of 2027.
According to reports, it is the largest acquisition to date in the global quantum computing industry, and Intel's first major acquisition in four years.
What Classiq does
Classiq develops a platform for writing quantum algorithms at a high level, and its system automatically translates them into circuits that can run on different kinds of quantum computers. That is one of the field's biggest problems: every hardware maker works differently, and writing code that suits each of them is hard and expensive. According to Ynet, the company has raised more than $200 million to date and employs about 130 people.
Why Intel needs it
Intel is developing quantum hardware based on silicon spin qubits, a technology close to the manufacturing processes of its conventional chips. Combining it with Classiq's platform should give Intel a full stack, from hardware to software. According to reports, Intel has committed that Classiq will keep supporting rivals' hardware, so existing customers will not be locked into Intel's technology.
Who benefits
According to Israeli Registrar of Companies data cited in the reports, the main beneficiaries include Entrée Capital, which holds about 15% of the shares, and Team8, which holds about 8%.
What it means for Israel
According to a map recently published by Calcalist, more than 20 quantum companies operate in Israel. An acquisition of this size is a strong signal to the market: quantum computing is still far from broad commercial use, but tech giants are already paying high prices to secure a front-row seat. TheMarker is already asking whether Intel, whose previous acquisitions have not always succeeded, will manage to realize the potential this time.
