Months after IBM announced the planned separation of its managed infrastructure services into a new business, Kyndryl, its board of directors has officially approved it.
IBM announced the development on Oct. 12.
“Today’s announcement is a milestone for IBM, its employees and its shareholders as we enter a new era of growth,” said Arvind Krishna, IBM chairman and chief executive officer. “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.”
Kyndryl is taking on IBM’s managed infrastructure services and absorb more than 4,000 IBM clients in more than 100 countries, leaving IBM to focus on AI and cloud computing capabilities.
Martin Schroeter will serve as chairman and CEO, and Matt Milton will serve as president.
“Kyndryl has an important and exciting mission – to design, build and manage the technology infrastructure that the world depends on each day,” said Martin Schroeter, Kyndryl chairman and chief executive officer. “As an independent and focused services leader, Kyndryl will be at the heart of progress for our customers.”
The company, to be based at 1 Vanderbilt Ave. in New York City, anticipates its distribution for Kyndryl shares to be Nov. 3 after close of market.
The record date for distribution will take place later this month on Oct. 25, at which point each holder of IBM common stock will receive one share of Kyndryl common stock for every five shares of IBM common stock held.