TSX higher on employment data
CHARLOTTE - Honeywell (NASDAQ:HON), a prominent industrial conglomerate with a market capitalization of $135.5 billion and annual revenue of $40 billion, announced Thursday that its quantum computing subsidiary Quantinuum has secured approximately $600 million in equity funding at a pre-money valuation of $10 billion. According to InvestingPro analysis, Honeywell currently trades near its Fair Value, demonstrating the market’s confidence in its strategic investments.
The capital raise attracted new investors including Quanta Computer, NVIDIA’s venture capital arm NVentures, and QED Investors, while existing shareholders such as JPMorgan Chase, Mitsui, and Amgen participated in the round. This investment comes as Honeywell maintains its strong market position, with InvestingPro data showing the company has maintained dividend payments for 41 consecutive years, reflecting its financial stability.
The funding will support Quantinuum’s development of quantum computing technology, including the upcoming launch of its next-generation quantum computing system, Helios, expected later this year. The company aims to be the first to achieve universal fault-tolerant computing.
"Quantinuum continues to meet and exceed our stated objectives – strategically, technically and commercially," said Vimal Kapur, Chairman and CEO of Honeywell, in a press release statement.
Quantinuum, which employs over 630 people including 370 scientists and engineers across the US, UK, Germany, and Japan, has recently expanded its commercial partnerships. The company will collaborate with NVIDIA as a founding partner at the NVIDIA Accelerated Quantum Research Center and has formed strategic relationships with organizations including RIKEN, SoftBank Corp., and Infineon.
The quantum computing firm has also established a joint venture in Qatar as part of the country’s $1 billion investment in quantum technologies over the next decade, and is expanding operations in New Mexico and Singapore.
J.P. Morgan Securities LLC served as the exclusive placement agent for the transaction, with Freshfields LLP providing legal counsel.
Quantinuum describes itself as a full-stack quantum computing provider developing commercially available quantum computers that lead in performance benchmarks. With analysts setting a consensus price target representing an 18% upside potential and maintaining a bullish outlook, investors can access detailed valuation metrics and 8 additional ProTips through InvestingPro’s comprehensive research reports.
In other recent news, Nvidia Corp.’s venture capital arm has made its first investment in the quantum computing firm Quantinuum, valuing the company at $10 billion. Nvidia is participating in a $600 million funding round that could be announced shortly. Meanwhile, Honeywell International Inc. has appointed Peter Lau as the new president and CEO of its Industrial Automation segment, effective October 15, following the departure of Lucian Boldea at the end of August. Additionally, Honeywell has announced the future Board of Directors for Solstice Advanced Materials, which is set to become an independent company in the fourth quarter of 2025. Dr. Rajeev Gautam will serve as the Independent Chair, and David Sewell will take on the role of President and CEO of Solstice. Honeywell has also filed a Form 10 registration statement with the Securities and Exchange Commission for the planned spin-off of Solstice, marking a significant step towards its independence. The newly formed company will be listed on the Nasdaq Stock Exchange under the ticker symbol "SOLS." These recent developments highlight strategic moves by both Nvidia and Honeywell in expanding and restructuring their business operations.
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