IBM shares surge on plans to spin off infrastructure companies unit as a brand new public firm

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International Business Machines will separate the managed infrastructure companies unit of its international know-how companies division into a brand new public firm, it mentioned on Thursday.

Shares of IBM jumped 5% in premarket buying and selling on the report.

IBM mentioned it hopes to grow to be extra centered on cloud software program and options via the separation. The spin-off is anticipated to be tax-free to IBM shareholders, and accomplished by the tip of 2021, the corporate mentioned. 

J.P. Morgan Securities and Lazard are serving as monetary advisors for the transaction, with Paul, Weiss, Rifkind, Wharton & Garrison performing as authorized advisor.

CNBC contributed to this report.

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