Babcock International Group and Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) demonstrated a secure communications network using quantum-safe encryption technology at the DVD 2026 event in Millbrook, according to a joint press release.

During the demonstration, data collected at one site was encrypted using Arqit software and transmitted to Babcock's Ground Deployed Advanced Mortar System (GDAMS) at a separate location within the event. The exercise showed how operational data could be exchanged between a headquarters and a deployed platform without physical inline encryptors.

The demonstration followed the signing of a Memorandum of Understanding between the two companies to explore combining Babcock's systems integration, digital engineering, and mission systems capabilities with Arqit's cryptographic and secure networking technologies.

Louise Atkinson, Chief Executive of Babcock's Land and Mission Systems business, said the emergence of quantum computing "will challenge many of today's encryption methods" and that the demonstration showed how resilient communications networks can protect operational data against future quantum-enabled threats.

Paul Feenan, Arqit General Manager for Government and Defence, said the companies' combined solution "can be deployed across networks from core to edge, enabling customers to keep intelligence and battlefield data secure against current and future threats."

Babcock, a FTSE 100 defense company, operates across the UK, Australasia, Canada, France, and South Africa. Arqit's primary products include Encryption Intelligence and NetworkSecure, which target post-quantum cryptography for governments and enterprises.