Honeywell to Spin Off Quantum Unit in Merger With Software Firm

Honeywell International Inc. plans to spin off its quantum computing business and merge it with a software firm to form a new company that is likely to trade publicly.

Honeywell will own a 54% stake of the venture after combining the business with Cambridge Quantum Computing Ltd., a London-based specialized software firm that will own the remaining 46%. Honeywell has committed to investing up to $300 million in the company, which may seek to sell shares to the public, said Tony Uttley, who heads Honeywell’s quantum computing business and will be president of the new entity.

“We are setting ...