UK-based quantum software company Cambridge Quantum Computing (CQC) has announced a merger with Honeywell Quantum Solutions (HQS), the newly spun-off quantum unit of Honeywell International, to form a joint venture. The deal has been approved by both parties and is to be completed by Q3 2021.

Honeywell International will hold 55% ownership of the new entity, investing around USD 270 million-USD 300 million, and will obtain a long-term agreement to assist in the production of ion traps for HQS. The remaining ownership will be held by CQC and its investors, including IBM. The name of the joint venture has not been disclosed yet.

Forbes reports the new entity will go public by the end of this year. Both companies believe the combined entity will enter the quantum computing industry as a strong player, leveraging the synergistic expertise and advanced technologies to attract more potential investors to fund the new company’s quantum computing milestones. 

Honeywell has previously invested in CQC via its venture capital arm and has also collaborated on a number of quantum projects with CQC in the past.