Honeywell to Sell Its Stake in Joint Venture to NEC

Honeywell Inc. said Monday that it is selling its 50% stake in HNSX Supercomputers Inc. to its joint venture partner, NEC Corp.

Terms of the deal were not disclosed.

A spokesman for NEC, the Japanese computer giant, said the venture, which has been only marginally successful in the United States, would continue with its existing staff and business plan.

The joint venture was created in October, 1986, between Honeywell and NEC to sell the Japanese manufacturer’s supercomputers in the United States and Canada. However, analysts said the venture made only a few sales. And none of them were in the United States, where corporations felt pressure to buy U.S. made machines.

But analysts said NEC, which is known for patiently nurturing markets, would probably stick with the venture for several more years before abandoning the U.S. market.

Honeywell, which has sold other computer operations in recent years, said it was selling its interest in the venture because it was outside the company’s main focus.