Honeywell to merge Broomfield quantum computing unit with a U.K. firm

12 shares, 74 points

Honeywell International Inc. (Nasdaq: HON) plans to merge its Broomfield-based Honeywell Quantum Solutions business with a UK-based business, Bloomberg reports, with the eventual spinoff potentially undergoing a public offering.

Honeywell, based in Charlotte, North Carolina, will own 54% of the new firm, which will be formed through the merger of Honeywell Quantum Solutions and Cambridge Quantum Computing. The new company, which has not yet been named, will have offices in Cambridge and Broomfield, Colorado.

Honeywell to merge Broomfield quantum computing
Image credit: BNN

Honeywell plans to invest between $270 million and $300 million in the new firm and has secured a long-term contract to build the ion traps required to power quantum hardware.

The transaction is anticipated to close in the third quarter of 2021.

Darius Adamczyk, chairman and CEO of Honeywell, will act as chairman of the new business, which will be directed by Ilyas Khan, CEO of Cambridge Quantum Computing. Tony Uttley, president of Honeywell Quantum Computing, will lead the new company.

“The new business will enable us to attract new, varied sources of finance at scale, hence accelerating growth,” Adamczyk said in a statement.

The combined company will have around 300 employees, including about 160 from Honeywell.

Honeywell is developing a quantum computer that will have a far greater computing capacity than conventional computers.

According to Honeywell, the quantum computing market might reach $1 trillion in the next three decades.

Uttley and Honeywell spokespeople did not respond to BizWest’s inquiries. Bloomberg stated that Uttley indicated that the new business may seek to sell shares to the public.



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