IBM Forms Independent Software Company
International Business Machines Corp., the world’s largest computer maker, has created an independent software company to focus on products to help businesses manage customer relationships.
The new company, which hasn’t been named, will have its own management and board and will be based in Indianapolis. Its chief executive will be Scott Webber, 45, former chief executive of Software Artistry, which IBM acquired earlier this year.
The new company will operate in much the same way as Lotus Development and Tivoli Systems, two software companies that have remained separate since being bought by IBM. Software is IBM’s most profitable business and accounted for 16% of 1997 sales.
Armonk, N.Y.-based IBM already has committed 500 of its own workers to the new group and expects employment to increase to about 2,000. IBM’s customer-relationship software and services now generates about $290 million in sales.
IBM shares fell $1.38 to close at $128.50 on the New York Stock Exchange.
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