Honeywell International Inc.'s Quantum Solutions business will merge with Cambridge Quantum Computing (CQC) to become the world's largest and most advanced independent quantum computing enterprise. According to Honeywell, this will set the tone for a $1 trillion quantum computing business over the next three decades.
According to Honeywell, the new firm will provide the "world's top performing" quantum computer as well as a full suite of quantum software, including the world's first and most advanced quantum operating system.
“These technologies will support customer needs for improved computation in diverse areas including cybersecurity, drug discovery and delivery, material science, finance, and optimization across all major industrial markets. The company will also focus on the advancement of natural language processing to fully leverage the possibilities of quantum artificial intelligence," the company said.
Quantum computing will remain a key breakthrough initiative for Honeywell. After the transaction is complete, Honeywell will own a majority stake in the new company, with commensurate governance rights. In addition, Honeywell will invest between $270 million and $300 million in the new company and will have a long-term agreement to help manufacture the critical ion traps needed to power the quantum hardware.
The combination is expected to be complete in the third quarter of 2021. Honeywell chairman and chief executive officer Darius Adamczyk will serve as chairman of the new firm.
The new company will be led by Ilyas Khan, the CEO and founder of CQC. Tony Uttley, currently the president of Honeywell Quantum Solutions, will serve as the new company’s president.
“Since we first announced Honeywell’s quantum business in 2018, we have heard from many investors who have been eager to invest directly in our leading technologies at the forefront of this exciting and dynamic industry now, they will be able to do so," Adamczyk said. “The new company will provide the best avenue for us to onboard new, diverse sources of capital at a scale that will help drive rapid growth."
Honeywell’s cross-disciplinary team of more than 160 scientists, engineers, and software developers will join the new company. The combined company will have a staff of over 300, more than 100 of whom hold doctorates and over 200 of whom are scientists that include some of the leading quantum computing experts.
CQC was founded in 2014 and is backed by some of the world's leading quantum computing companies. With a team of approximately 150 and offices in Europe, the UK, Japan, and the US, CQC is a pioneer in the quantum software sector and a leader in the commercialization of quantum technologies.
There is no change to Honeywell's 2021 financial outlook as a result of the transaction. JP Morgan Securities LLC acted as Honeywell’s lead financial advisor for the transaction. The new company’s name will be announced on a future date.
