US ATM manufacturer NCR says it plans to split its business into two separate companies by spinning off of its Teradata data warehousing unit to shareholders.
The spin-off will allow each unit to better focus on its individual customer base, business strategy and operational needs, says Ohio-based NCR.
Teradata had revenues of $1.5 billion and operating income (excluding pension expense) of $309 million in 2005.
Following the split NCR will continue developing technology for ATMs, retail self-checkout systems, automated bill payment systems and kiosks. In addition, NCR will focus on its other businesses, which include retail point-of-sale technologies and customer-support services as well as business consumables and cheque-processing and imaging software. Combined these businesses had revenues of $4.5 billion and operating income (excluding pension expense) of $251 million in 2005.
Bill Nuti, NCR president and CEO, says the separation is a logical strategic step.
"Teradata and the new NCR operate in different markets each with solid prospects for the future, but they have markedly different business models," he says. "Both new companies should benefit from sharper management focus on their unique business opportunities."
Following the spinoff Mike Koehler, currently senior vice president of NCR's Teradata division, will serve as president and CEO of Teradata. Nuti will continue as president and CEO of NCR.
The transaction is expected to be tax-free and close in six to nine months, subject to Securities and Exchange Commission and other customary conditions.