Shares of IBM are up nearly 11% so far this year.
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Meet Kyndryl. That’s the name IBM chose for the new company created from the previously announced spinoff of its managed services business that it expects to complete later this year.
In a statement, Kyndryl CEO Martin Schroeter, who had been previously announced as the leader of the new company, said the name “evokes the spirit of true partnership and growth.”
He said that customers “will come to know Kyndryl as a brand that runs the vital systems at the heart of progress, and an independent company with the best global talent in the industry.”
The company said “kyn” alludes to the word kinship, while “dryl” comes from “tendril,” alluding to new growth. Together, the name brings “to mind new growth and the idea that–together with customers and partners–the business is always working toward advancing human progress,” Schroeter said.
IBM (ticker: IBM) also said Kyndryl will be headquartered in New York City.
IBM has previously said the spinoff will have more than 4,600 clients in 115 countries, including more than 75% of the Fortune 100, with a backlog of $60 billion. The business will have 90,000 employees.
Specific financial terms of the spinoff have not yet been announced.
When the spinoff was announced late last year, IBM CEO Arvind Krishna said the company will now be “laser focused” on the cloud. “IBM will focus on its open hybrid cloud platform and AI capabilities,” he said at the time. The new company will have “greater agility to design, run and modernize the infrastructure of the world’s most important organizations.”
IBM shares on Monday were down 1.1%, to $134.24. The Nasdaq Composite index was down 0.5% before noon on Monday.
Write to Eric J. Savitz at [email protected]
