Cash machine company NCR is to spin off its data warehousing arm Teradata into a separate company.
The de-merger will take around six to nine months and will see the companies run as separate businesses. In a statement NCR said the process would allow both companies to "better focus on their distinct customer base, business strategy and operational needs."
Teradata, had revenues of $1.5 billion and operating income (excluding pension expense) of $309 million in 2005. It will focus on the enterprise data warehousing market.
After the spin off, NCR will continue to sell automated teller machines (ATMs), retail self-checkout systems, automated bill payment systems, and airline, hotel and hospital self-check-in/out kiosks.
In addition, the company will focus on its other businesses, which include retail point-of-sale technologies and customer-support services as well as business consumables and check-processing and imaging solutions. Combined, these businesses had revenues of $4.5 billion.
"This separation is a logical strategic step for NCR. We believe it will benefit our customers, business partners, employees and shareholders," said Bill Nuti, president and chief executive officer of NCR.
Nuti said that Teradata and NCR operate in different markets, but have different business models. "Both new companies should benefit from sharper management focus on their unique business opportunities," he said.
