IBM plans to spin off its $19 billion managed-infrastructure services business.
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IBM has picked longtime executive Martin Schroeter to helm the yet-to-be-named services company to be spun out of Big Blue before the end of the year. He starts the new role on Jan. 15.
In October, IBM (ticker: IBM) announced plans to spin off its $19 billion managed-infrastructure services business, while focusing the rest of the company on hybrid cloud software and services.
Schroeter joined IBM in 1992 after graduating from business school and has served in multiple roles, mostly recently as senior vice president, global markets, where he ran global sales, client relationships, and worldwide geographic operations. He had previously served as the company’s chief financial officer. Schroeter retired from IBM in April 2020, not long after being passed over in favor of Arvind Krishna to succeed Ginni Rometty as IBM’s CEO.
IBM said that “NewCo” will “focus on the management and modernization of IT infrastructure in every industry around the world.”
“Martin is a world-class leader and is uniquely qualified to drive the long-term success of the new, independent company,” Krishna said in a statement. “He has a deep understanding of the industry and has earned the trust of our clients and of the investor community. Martin has the strategic vision and business judgement to realize NewCo’s enormous potential as the global leader in managed infrastructure services. He is an inspiring, results-driven executive and the right CEO to lead NewCo through the spin-off process and beyond.”
Schroeter added that he looks forward “to developing a diverse ecosystem of partnerships and alliances, to continuing a deep relationship with IBM, and to the creation of market leading capabilities.”
Schroeter has an M.B.A. from Carnegie Mellon University and an undergraduate degree in economics and finance from Temple University. He has dual citizenship in the U.S. and Australia.
IBM stock is up 0.4%, at $129.75, in recent trading. The S&P 500 is up 1.5%.
Write to Eric J. Savitz at [email protected]
