International Business Machines Corporation (NYSE: IBM) shared traded up 12.55% in the pre-market trading session of Thursday after the company announced that it has decided to split off its Managed Infrastructure Services unit of its Global Technology Services division into a new public company. The decision has been taken to focus more on a hybrid cloud growth strategy to provide the best experience to its customers.
The cloud-focused computer group has disclosed that the separation of an infrastructure unit is expected to complete by the end of 2021. This separation is a tax-free split off to the shareholders of IBM. CEO Arvind Krishna said that now is the right time of separation so that the two market leaders will be able to focus on what they do best.
He said that the International Business Machines Corporation will focus on Artificial intelligence capabilities and open hybrid cloud platforms while the NewCo will be able to design, run and modernize the infrastructure of the world’s most important organizations. After the separation both the companies will be able to focus on their respective businesses and will be able to improve their growth by capturing new opportunities and be able to create value for clients and shareholders.
International Business Machines Corporation (NYSE: IBM) shares traded up 11.69% at $138.52 during the pre-market trading session on Thursday. It has gained +2.10 at $124.07 on the trading session of Wednesday. This company stock fluctuated between the 52-weeks low range of $90.56 and a high range of $158.75. IBM has moved up 37.00% from its 52-weeks low and moved down -21.85% from its 52-weeks high. This company has a total market capitalization of $110.97 billion at the time of writing.
International Business Machines Corporation also disclosed that it is projected third-quarter revenue of $17.6 billion and an adjusted profit per share of $2.58. IBM will speed up clients’ digital transformation journeys, and NewCo will speed up clients’ infrastructure modernization efforts.