(Reuters) -Canadian technology company BlackBerry said on Wednesday it would separate its Internet of Things (IoT) and cybersecurity business units and target a subsidiary initial public offering for the IoT business next fiscal year.
BlackBerry joins a number of companies that have split their units in recent years, favoring a leaner corporate structure to help investors better evaluate their separate businesses.
The company had said in May it would consider strategic options for its portfolio of businesses that could include the possible separation of one or more of its businesses.
Earlier this week, the packaged food giant formerly known as Kellogg Co completed its spinoff. Healthcare giant Johnson & Johnson and industrial conglomerate General Electric have also spun off some of their units.
U.S.-listed shares of BlackBerry fell 1.84% in trading after the bell.
Last year, the Waterloo Ontario-based company pulled the plug on its smartphones business and has since been trying to sell its legacy patents related to its mobile devices.
The company went public in 1997 and soon became popular for its ubiquitous business smartphones, which were toted by executives, politicians and legions of fans in the early 2000s.
(Reporting by Savyata Mishra and Samrhitha Arunasalam in Bengaluru; Editing by Shilpi Majumdar and Shinjini Ganguli)
Barbara Terrio is a seasoned business journalist, delving into the world of finance, startups, and entrepreneurship. With a knack for demystifying complex economic trends, she helps readers navigate the business landscape. Outside of her reporting, Barbara is an advocate for financial literacy and enjoys mentoring aspiring entrepreneurs.
