Rail Vision Ltd., an early commercialisation stage technology company seeking to revolutionise railway safety and the data-related market, recently announced the signing of an agreement for a strategic transaction to acquire 51 per cent ownership of Quantum Transportation Ltd., a cutting-edge quantum computing and AI company specialising in error correction technologies. The closing of the Acquisition is expected to occur in late December 2025 to early January 2026, subject to the satisfaction of customary closing conditions.
Quantum Transportation holds an exclusive sublicense for rail technologies and platforms for an innovative pending patent application in quantum error correction owned by Ramot, the technology transfer company of Tel Aviv University. This IP and additional know-how address critical challenges in noisy intermediate-scale quantum devices by enabling efficient, real-time decoding of surface code errors, significantly reducing computational overhead compared to traditional methods and supporting scalable fault-tolerant quantum computing.
Through this transaction, Rail Vision and Quantum Transportation aim to combine quantum-AI-based intellectual property (IP) protection and innovation with Rail Vision’s advanced vision and railway-safety technologies.
This strategic combination is expected to create meaningful technological synergies, enhance Rail Vision’s current and future product lines, accelerate innovation, and support long-term value creation for stakeholders.
Upon the closing of the Acquisition, Rail Vision will issue ordinary shares representing approximately 4.99 per cent of its issued and outstanding share capital, immediately before such issuance, to certain Quantum Transportation shareholders in exchange for their full holdings in Quantum Transportation, representing 51 per cent ownership of Quantum Transportation Ltd. and securing majority control post-closing.
Additionally, upon the closing of the Acquisition, Rail Vision will extend a convertible loan of up to $700,000 to Quantum Transportation at an 8 per cent annual interest rate, disbursed in tranches to support Quantum Transportation's ongoing operations and development roadmap for the next 18 months. The loan, including principal and interest, shall be repayable in one payment within a 24-month term. Rail Vision will have the sole discretion to convert the outstanding amount into Quantum Transportation’s most senior class of shares, at a conversion price equal to the lower of (i) the valuation implied by the share exchange in the current acquisition or (ii) the price per share in a future equity investment in Quantum Transportation, subject to certain conditions.
Quantum Transportation’s sub-licensed, machine learning-based universal decoder pending patent represents a potential breakthrough in quantum error correction, addressing the inherent noise in qubits that limit scalable quantum computing. This technology, developed by leading computer science experts and protected as patented IP, is code-agnostic, noise-aware, and scalable. This enables it to adapt seamlessly across various hardware platforms and code sizes and empowers quantum hardware companies and labs, particularly small- to medium-sized entities, to research and select optimal error correction schemes without in-house teams.
