Tech giant Honeywell is upping its bet on the business future of quantum computing, combining its own three-year-old group with UK-based Cambridge Quantum Computing and pledging to invest as much as $300 million in the new venture.
The combined company will compete against other major quantum computing players such as IBM, Microsoft and Google. Honeywell sees the quantum computing market as being worth $1 trillion. IBM is an investor in CQC.
Honeywell’s own trapped ion-based quantum computing hardware has achieved a quantum volume of 512, “the highest measured on a commercial quantum computer to date,” Honeywell noted.
The deal announced early Tuesday calls for Honeywell to be the majority owner. Honeywell Chair and CEO Darius Adamczyk will serve as chair of the combined firm. Ilyas Khan, CEO and founder of CQC, will run the combined company.Tony Uttley, who is president of Honeywell’s current quantum unit, will be the new company’s president.
Closing is expected later this year.
Honeywell, which is based in Charlotte, said it will invest between $270 million and $300 million in the new venture. Cambridge Quantum Computing is also recognized as a global player in the Quantum space.
“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 in the announcement. “The new company will provide the best avenue for us to onboard new, diverse sources of capital at scale that will help drive rapid growth.”