Honeywell Quantum Solutions and Cambridge Quantum Computing are merging into a standalone quantum computing company majority-owned by Honeywell, the companies announced Tuesday.
Honeywell has made a big push into quantum computing over the last few years as it looks to expand industrial usage of the technology. Last year, the company launched its System Model H1, a quantum computer with a quantum volume of 128, as well as a cloud API that makes it available to enterprises.
In March, Honeywell announced that the System Model H1 effectively reached a quantum volume of 512, prompting Honeywell's president of quantum solutions Tony Uttley to describe the system as "the highest performing quantum computing system in the world."
In spinning out its quantum computing business, Honeywell said the new company will have more access to outside capital to advance its quantum technology, with Honeywell continuing to serve as a proving ground for the new company's quantum offerings.
"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 CEO Darius Adamczyk. "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."
Honeywell is investing between $270 million and $300 million in the new company and the two organizations will have a long-term manufacturing agreement for producing the ion traps needed to power the quantum hardware. Honeywell said the software business will remain hardware-agnostic and fully compatible with global quantum hardware providers.
The combination is expected to be complete in the third quarter of 2021, subject to regulatory approvals and customary closing conditions. Adamczyk will serve as chairman of the new company, while Ilyas Khan, the CEO and founder of CQC, will serve as chief executive. Uttley will serve as the new company's president. Honeywell's team of more than 160 scientists, engineers, and software developers will also join the new company, which is expected to have a combined staff of over 300.