NCR to Spin Off Teradata

NCR and its Teradata data warehousing division will separate into two publicly traded companies in a move designed to better focus their respective business strategies, NCR said Monday.

Teradata, which makes enterprise-grade data warehousing software, and NCR work in different markets and have different business models, said Bill Nuti, NCR’s president and chief executive officer, in a statement. NCR’s businesses include automated teller machines and retail point-of-sale technologies. The separation will allow for a sharper management focus and better employee incentive plans, Nuti said.

In 2005, Teradata had revenues of US$1.5 billion and an operating income of $309 million, NCR said.

The division must be approved by NCR’s board of directors. Under the plan, holders of NCR common stock will receive Teradata stock, although the distribution ratio has not been determined yet, NCR said.

Once the separation is completed within the coming six to nine months, Nuti will head up the new smaller NCR, while Mike Koehler, the current senior vice president of the Teradata division, will become president and CEO of Teradata.

-Jeremy Kirk, IDG News Service (London Bureau)

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