Kyndryl finalises separation from IBM
IT services firm Kyndryl has completed its previously announced spin-off from IBM and is now trading as an independent company on the New York Stock Exchange under the ticker “KD”.
“We are thrilled that Kyndryl is today an independent company – with 90 000 of the best and brightest professionals, a strong balance sheet and a path to growth,” says Martin Schroeter, Kyndryl chairman and chief executive officer.
“There is a large and growing need for digital transformation services, and our unrivalled global expertise in creating, managing and modernising mission-critical information systems positions us well in a market that will expand to more than $500 billion by 2024. We look forward to the path ahead, with a flatter and faster company that is at the heart of progress for our customers and for the world.”
“Kyndryl begins as a trusted partner to leading companies throughout the Middle East, Africa and Turkey, and local teams with unmatched technical skills and experience,” says Vickram Nagi, managing director for Kyndryl Middle East, Africa and Turkey. “I am honoured to lead Kyndryl here in the region, where we are committed to delivering outstanding IT services to customers in close collaboration with our broad ecosystem.”
Kyndryl says it begins its independent life with a solid financial position, with $19 billion in annual revenue, investment-grade credit ratings and long-standing customer relationships that drive annuity-like revenue streams.
The company says it is led by an experienced management team and a board of directors comprising 10 leaders who bring diverse perspectives and experiences spanning technology, financial services, government affairs and academia.
Kyndryl shares were distributed on the evening of 3 November to shareholders of IBM, who received one Kyndryl share for every five IBM shares owned.
IBM has temporarily retained 19.9% equity ownership of Kyndryl following this distribution.