NCR, Teradata to split up

NEW YORK (CNNMoney.com) -- NCR Corp. said Monday it would split up into two separate companies by spinning off its entire Teradata Data Warehousing business to shareholders.

NCR, which manufactures a range of products including ATM machines and bar code scanners, said the move should be tax-free and will help each company better focus on their own individual customer base and business strategies.

"This separation is a logical strategic step for NCR," Bill Nuti, president and chief executive officer of NCR, said in a prepared statement. "Teradata and the new NCR operate in different markets each with solid prospects for the future, but they have markedly different business models."

In 2005, Teradata generated $1.5 billion in revenue and $309 million in operating income, NCR said.

As a result of the spinoff, which is expected to be completed in 6 to 9 months, Nuti will continue to serve as president and CEO of NCR, while Mike Koehler, currently senior vice president of the Teradata division, will serve as president and CEO of Teradata.

Shares of NCR (Charts), which competes against rivals such as Diebold Inc. (Charts) and IBM (Charts), finished slightly lower in Friday trade on the New York Stock Exchange.

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