NCR Corporation has just announced its intention to split itself into two independent companies, NCR and Teradata. NCR Corporation believes that this move will enable the two companies to better focus on their distinct customer base and business strategy and increase their foothold in their respective market segments.

NCR plans to spin off 100% of the company’s Teradata Data Warehousing business to holders of shares of NCR common stock.

Post the Teradata spin off, NCR will continue to provide the self-service technologies, which include automated teller machines (ATMs), retail self-checkout systems, automated bill payment systems, and kiosks that it’s known for.

In addition to this, it will also explore opportunities in other businesses such as retail point-of-sale technologies and customer-support services, business consumables and check-processing and imaging solutions.

The spin off will allow Teradata to build on its strong customers base and improve its data warehousing credentials. Teradata garnered revenues worth $1.5 billion in 2005.

According to Bill Nuti, president and CEO, NCR, "This separation is a logical strategic step for NCR and both new companies should benefit from it. Each new entity should be able to more effectively pursue their specific growth and research and development agenda, while designing employee incentive plans that are more directly aligned with their own performance and growth objectives."

Following the separation, Bill Nuti will serve as president and CEO of NCR, and Mike Koehler, currently senior vice president of the Teradata Division, will serve as president and CEO of Teradata.

NCR has engaged JPMorgan as its financial advisor. The spin off is expected to be completed in six to nine months.