By Dave Sebastian
Honeywell International Inc. said its quantum-computing business is combining with Cambridge Quantum Computing to create a standalone company.
Honeywell on Tuesday said it will own a majority stake in the new company. It will invest between $270 million and $300 million in the entity and have a long-term agreement to help make the ion traps needed to power the quantum hardware.
Honeywell Chairman and Chief Executive Darius Adamczyk will serve as the new entity's chairman. Cambridge Quantum Computing founder and Chief Executive Ilyas Khan will lead the entity, while Honeywell Quantum Solutions President Tony Uttley will become the entity's president.
The combined company will have a staff of more than 300, Honeywell said.
The company said it expects the combination to close in the third quarter. Honeywell said it maintains its 2021 financial outlook as a result of the transaction. It said it will announce the new company's name at a later date.
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(END) Dow Jones Newswires