NCR (NYSE:NCR) stock is falling on Friday after the enterprise technology company revealed plans to split its business in two.
According to a press release from NCR, the company will split into two independent publicly traded companies. One of these companies will focus on digital commerce while the other will operate its ATM business.
NCR says it decided to move forward with the split plan instead of an entire sale of the company. It claims this was due to current markets not allowing for a transaction that best benefitted holders of NCR stock.
CEO Michael Hayford said the following in the news release:
“This announcement is the right next step in NCR’s transformation. The separation would create two strong companies at scale, each with distinctive business goals and capital structures and allocation, as well as increased flexibility to innovate.”
When Will the Split Happen?
NCR notes that the split of the company into two separate businesses will be done in a tax-free manner. Based on current estimates, the company expects this split to take place near the end of 2023.
Today’s news has shares of NCR stock seeing heavy trading. As of this writing, more than 4 million shares have changed hands. To put that in perspective, the company’s daily average trading volume is roughly half that at 2.1 million shares.
NCR stock is down 23% as of Friday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.