Honeywell Quantum Solutions & Cambridge Quantum Computing Combine
June 10, 2021
Quantum Solutions (HQS) and Cambridge Quantum Computing (CQC will combine to
form the largest, most advanced standalone quantum computing company in the
world, setting the pace for what is projected to become a $1 trillion quantum
computing industry over the next three decades.
The new company will offer the world's highest performing quantum computer and a
full suite of quantum software, including the first and most advanced quantum
operating system. These technologies will support customer needs for improved
computation in diverse areas including cyber security, drug discovery and
delivery, material science, finance, and optimization across all major
industrial markets. The company will also focus on the advancement of natural
language processing to fully leverage the possibilities of quantum artificial
Quantum computing will remain a key breakthrough initiative for Honeywell. After
the transaction is complete, Honeywell will own a majority stake in the new
company, with commensurate governance rights. In addition, Honeywell will invest
between $270 million and $300 million in the new company and will have a
long-term agreement to help manufacture the critical ion traps needed to power
the quantum hardware. Honeywell's businesses will continue to serve as a proving
ground for the new company's quantum offerings.
The combination is expected to be complete in the third quarter of 2021, subject
to regulatory approvals and customary closing conditions. Honeywell Chairman and
Chief Executive Officer Darius Adamczyk will serve as chairman of the new
company. The new company will be led by Ilyas Khan, the CEO and founder of CQC.
Tony Uttley, currently the president of HQS, will serve as the new company's
"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. "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 continued, "The new company will have the best talent in the industry,
the world's highest-performing quantum computer, the first and most advanced
quantum operating system, and comprehensive, hardware-agnostic software that
will drive the future of the quantum computing industry. The new company will be
extremely well positioned to create value in the near-term within the quantum
computing industry by offering the critical global infrastructure needed to
support the sector's explosive growth."
"Joining together into an exciting newly combined enterprise, HQS and CQC will
become a global powerhouse that will develop and commercialize quantum solutions
that address some of humanity's greatest challenges, while driving the
development of what will become a $1 trillion industry," Khan said. "I am
excited to lead a company that has the best people and technologies in the
quantum computing industry and the best and boldest clients. Together we will
lead the industry as it grows and matures, and create tangible, credible,
provable and science-led advances."
Honeywell's trapped ion-based quantum computing hardware recently achieved a
quantum volume of 512, the highest measured on a commercial quantum computer to
date, with further advances in progress. CQC is the global leader in software,
cyber security and algorithms that help optimize quantum computing hardware.
CQC's software business will remain hardware agnostic and will continue to be
fully compatible with all global quantum hardware providers. Honeywell has been
an investor in and commercial partner with CQC since 2019.
Over the last decade, Honeywell has incubated its quantum business from the idea
stage to commercial launch. Today, HQS employs some of the world's leading
experts in quantum computing and provides customers from some of the world's
largest organizations with access to the highest-performing quantum computers.
Honeywell's cross-disciplinary team of more than 160 scientists, engineers, and
software developers – dedicated to advancing quantum volume and addressing real
enterprise problems across industries – will join the new company. The combined
company will have a staff of over 300, more than 100 of whom hold doctorates and
over 200 of whom are scientists that include some of the world's leading quantum
Honeywell's quantum computer uses trapped-ion technology, which leverages
numerous, individual, charged atoms (ions) to hold quantum information.
Honeywell's system applies electromagnetic fields to hold (trap) each ion so it
can be manipulated and encoded using laser pulses. These high-performance
operations require deep experience across multiple disciplines, including atomic
physics, optics, cryogenics, lasers, magnetics, ultra-high vacuum, and precision
control systems. Honeywell has a decades-long legacy of expertise in these
was founded in 2014 and is backed by some of the world's leading quantum
computing companies. With a team of approximately 150 and offices in Europe, the
United Kingdom, Japan, and the United States, CQC is a pioneer in the quantum
software sector and a leader in the commercialization of quantum technologies.
In this year alone, CQC has announced groundbreaking advances that make quantum
computers practically useful to the finance and banking industry by enabling
quantum Monte Carlo simulations; unveiled unhackable keys for cybersecurity,
using Honeywell's quantum computers to allow for the protection of corporate,
governmental and private data and communications; provided details of the
world's largest experiment in quantum natural language processing, a key enabler
of AI; announced commercial projects in drug discovery in critical areas that
will enhance humanity's well-being; and provided open-access to all quantum
software developers to "tket," the world's most popular quantum software
There is no change to Honeywell's 2021 financial outlook as a result of the
transaction. J.P. Morgan Securities LLC acted as Honeywell's lead financial
advisor for the transaction. The new company's name will be announced on a