IBM finalises separation of Kyndryl into standalone business

Managed infrastructure services business to begin trading on the NYSE

IBM has completed the separation of its managed infrastructure services business to become its own separate company, Kyndryl.

Kyndryl will begin "regular way" trading on the New York Stock Exchange today under the symbol KD and each holder of IBM common stock will receive one share of Kyndryl common stock for every five shares of IBM common stock held on 25 October.

"The separation of Kyndryl is one of many actions we are taking to sharpen our focus on hybrid cloud and AI, leverage a portfolio clearly focused on technology and consulting, and achieve our growth objectives," said Arvind Krishna, IBM chairman and chief executive officer.

"We look forward to our partnership with Kyndryl as it moves forward as an independent company."

IBM is retaining 19.9 percent of the shares of Kyndryl common stock, with the intention of exchanging those shares for IBM debt during the 12-month period following the distribution, subject to market considerations.

The vendor first announced plans to spin off its managed infrastructure services division into a new business last October and revealed it would be called Kyndrl in April, a name which raised a few eyebrows in the channel.

Tosca Colangeli was named as Kyndryl's new president for the UK and Ireland in July, before the new standalone company unveiled its first board of directors in September which will be led by CEO and chairman Martin Schroeter.

The move was finally approved last month and will now see Kyndrl's stock begin to be traded on the NYSE.