Honeywell International (NYSE: HON) has agreed to merge its quantum solutions business with Cambridge Quantum Computing into a new company that will focus on offering software and hardware products to support computation requirements in areas such as cybersecurity, finance and material science.
Charlotte, North Carolina-based Honeywell said Tuesday it plans to invest as much as $300 million in the joint venture as a majority owner and support trapped-ion quantum computer production as part of the agreement.
U.K.-based CQC develops software and algorithms designed primarily for computing use in the financial, energy, chemical and material science industries.
“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,” said Honeywell Chairman and CEO Darius Adamczyk.
Adamyk will become chairman of the combined organization. CQC CEO Ilyas Khan and Honeywell Quantum Solutions President Tony Uttley will assume similar leadership positions in the new entity.
Honeywell said it has been a commercial partner of CQC over the past two years and expects to close the deal in the third quarter.
J.P. Morgan Securities served as the conglomerate’s lead financial adviser on the transaction, which is subject to customary closing conditions.