IBM’s board of directors approves a brand new managed infrastructure services division, turning it into Kyndryl, a publicly-traded company that goes live next month.
Kyndryl shares go to IBM investors
Big Blue announced that Kyndryl shares would be distributed to IBM investors after the close on November 3, setting the scene for Kyndryl to go public afterward.
According to an announcement from IBM, each IBM common stockholder gets one share of Kyndryl for every 5 shares of IBM common stock as of October 25. Moreover, 80% of outstanding Kyndryl shares will be distributed pro-rata to IBM stockholders.
According to the release, IBM aims to exchange 19.9% of Kyndryl shares for IBM debt 12 months after the distribution. Therefore, existing shareholders don’t need to do anything at all to get Kyndryl common stock shares. The ticker sign “KD” will be used to trade Kyndryl on the NYSE.
The future of Kyndryl
In September, the New York-based corporation announced that it had seen three years of declining revenue and a $2.01 billion net loss the previous year.
Based in Armonk, New York, IBM will prioritize hybrid cloud, AI, and other up-and-coming technologies in the wake of the spin-off. Kyndryl will compete against DXC Technology by focusing on developing, running, and updating customer technology infrastructures.
Cloud, digital workplace, security and resiliency, network and edge, core enterprise and zCloud, apps, data, and artificial intelligence will be in Kyndryl’s repertoire of globally managed services. Kyndryl will also provide consultation and implementation services to customers on digital environments as well as advanced technology adoption and integration.
Plans in process
After the spin-off, IBM will drop from first to second place on the CRN Solution Provider 500 list of North America’s largest solution providers in 2020, trailing only Accenture. NewCo will be ranked No. 5 on the CRN SP500 list, after Accenture, IBM, Tata, and DXC Technology.