IBM’s board of directors has approved the previously announced separation of Kyndryl, the company’s managed infrastructure services business.
Back in October 2020, IBM announced plans to separate the Managed Infrastructure Services unit of its Global Technology Services division into a new public company, creating two companies, each with strategic focus and flexibility to drive client and shareholder value. The move, IBM said at the time, would enable it to focus on its open hybrid cloud platform.
To effect the separation the IBM board of directors declared a pro rata distribution to IBM stockholders of 80.1% of the outstanding shares of Kyndryl. IBM will retain 19.9% of the shares of Kyndryl common stock, with the intention of exchanging those shares for IBM debt during the 12-month period following the distribution, subject to market considerations.
“The separation of Kyndryl is a significant step in the continued evolution of IBM, a company now squarely focused on delivering powerful hybrid cloud and AI solutions and capabilities to enterprises around the world,” said Arvind Krishna, IBM chairman and CEO.
“Kyndryl has an important and exciting mission—to design, build and manage the technology infrastructure that the world depends on each day,” noted Martin Schroeter, Kyndryl chairman and CEO. “As an independent and focused services leader, Kyndryl will be at the heart of progress for our customers.”
For more information, visit www.kyndryl.com and www.ibm.com.