IBM to spin off infrastructure services as new public company

FILE PHOTO: A man stands near an IBM logo at the Mobile World Congress in Barcelona, Spain, February 25, 2019. REUTERS/Sergio Perez/File Photo

(Reuters) – International Business Machines Corp said on Thursday it would spin off the managed infrastructure services unit of its Global Technology Services division into a new public company.

The company said it hopes to become more focused on cloud software and solutions through the separation.

IBM shares were up more than 4% in premarket trading.

The separation of the new company is expected to be achieved as a tax-free spin-off to IBM shareholders and completed by the end of 2021, IBM said.

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