Honeywell International Inc. (Nasdaq: HON) will merge its Broomfield-based Honeywell Quantum Solutions subsidiary with a U.K. company, with Bloomberg reporting that a public offering is possible for the resulting spinoff.
Charlotte, N.C.-based Honeywell will own 54% of the new company, which will result from the merger of Honeywell Quantum Solutions and Cambridge Quantum Computing. The new company, which has yet to be named, will be based in Cambridge, United Kingdom, and Broomfield.
Honeywell said it will invest $270 million to $300 million in the new venture and will secure a long-term contract to manufacture ion traps needed to power quantum hardware.
The combination is expected to be complete in the third quarter of 2021.
Honeywell chairman and CEO Darius Adamczyk will serve as chairman of the new entity, which will be led by Cambridge Quantum Computing CEO Ilyas Khan. Honeywell Quantum Computing president Tony Uttley will serve as president of the new company.
“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,” Adamczyk said in a statement.
The combined company will employ more than 300, including about 160 from Honeywell.
Honeywell is working to develop a quantum computer, which would provide far more computing power than traditional computers.
Honeywell estimates that the market for quantum computers could reach $1 trillion over the next three decades.
Uttley and spokespersons for Honeywell did not respond to emails from BizWest. Bloomberg reported that the new company might seek to sell shares to the public, a statement attributed to Uttley.
© 2021 BizWest Media LLC
This is a syndicated post. Read the original post at Source link .