Rail Vision Ltd. has announced the signing of a non-binding term sheet to acquire 51% ownership of Quantum Transportation Ltd., a quantum computing and artificial intelligence (AI) company specialising in quantum error correction technologies.
Through this potential acquisition, Rail Vision and Quantum Transportation aim to merge quantum-AI innovation with Rail Vision’s existing safety and vision technologies, creating synergies that could enhance current product lines, accelerate research and development, and strengthen long-term growth prospects.
Under the proposed terms, upon completion of the transaction Rail Vision will issue ordinary shares representing approximately 4.99% of its share capital to select Quantum Transportation shareholders, in exchange for their full holdings in the company. This will secure Rail Vision’s majority control post-closing.
Additionally, Rail Vision intends to provide a convertible loan of up to USD 700,000 to Quantum Transportation at an 8% annual interest rate, disbursed in tranches to support ongoing operations and development. The loan will be repayable in a single instalment within 24 months and may be converted, at Rail Vision’s discretion, into Quantum Transportation’s most senior class of shares.
Quantum-AI breakthrough in error correction
Quantum Transportation’s core technology is a machine learning-based universal decoder, offering a major advancement in quantum error correction—a critical challenge in scaling quantum computing. The patented solution is code-agnostic, noise-aware, and scalable, enabling it to operate across diverse hardware platforms and code sizes.
This innovation allows quantum hardware manufacturers and research laboratories—especially small and mid-sized enterprises—to test and optimise error correction methods without needing in-house specialist teams.
By leveraging this intellectual property for transportation applications, Rail Vision aims to develop quantum-AI powered systems capable of advancing anomaly detection, predictive maintenance, and autonomous operations in railways. The company sees the growing quantum computing market as a driver for transformative improvements in transport efficiency and safety.
A strategic step in technological convergence
“We believe that this potential strategic acquisition of Quantum Transportation would mark a transformative step for Rail Vision, blending our rail-focused AI expertise with groundbreaking quantum error correction to redefine safety and efficiency in the global railway sector,” said David BenDavid, CEO of Rail Vision.
“With Quantum Transportation’s innovative patented decoder, we aim to pioneer quantum-AI synergies that address real-world rail challenges.”
The transaction remains subject to the negotiation of definitive agreements, fulfilment of key milestones and regulatory approvals. Rail Vision expects the acquisition to close within 60 days, pending satisfaction of all conditions.
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