NCR, Teradata to split up
ATM-maker calls spinoff of its data warehousing business to shareholders 'a logical strategic step.'
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.