(Washington) US IT giant IBM will split its infrastructure management business into a publicly traded company to focus in turn on "cloud" or cloud computing, the group announced in a press release Thursday.
Posted Oct 8, 2020 at 9:49 am
The new limited liability company will bring together the hosting, service and infrastructure management companies that IBM says are behind by $ 60 billion.
It has relationships with 4,600 customers in 115 countries, operating in a potential $ 500 billion market, according to IBM.
The spin-off is expected to be completed by the end of 2021 as a non-taxable shareholder transaction.
For IBM, it is all about focusing on the growth market of "cloud" and artificial intelligence. Cloud computing represents a potential $ 1 trillion market, the group says.
"Our customers' needs for infrastructure services vary as adoption of our hybrid cloud platform accelerates," said Arvind Krishna, IBM's Managing Director.
"Now is the right time to create two leading companies that focus on what they do best," he added. IBM also released preliminary third-quarter results on Thursday, showing adjusted earnings per share of $ 1.89 and operating income of $ 2.58 on sales of $ 17.6 billion. 17.7 billion in the previous quarter.
On Wall Street, the highly traded IBM stock rose more than 7% at the opening.