Canadian technology firm BlackBerry (BB) is planning to spin-off its Internet of Things (IoT) business and hold an initial public offering (IPO) for the unit within the next fiscal year.
The announcement of the IPO comes as BlackBerry said it will separate its IoT and cybersecurity businesses going forward following a strategic review of its operations.
BlackBerry joins a growing number of companies that have split their businesses in recent years, spinning off less profitable units as standalone companies with new names.
In the last week, medical device manufacturer Danaher (DHR) spun off its water testing business into a new publicly traded company called Veralto (VLTO).
Healthcare giant Johnson & Johnson (JNJ) and industrial conglomerate General Electric (GE) have also spun off business units in recent years.
BlackBerry said in May of this year that it was considering all options for its business, including a potential sale. While there have been rumours of a possible takeover, no deal has emerged.
Last year, BlackBerry ended its legacy smartphone business for good and has been selling its patents related to its mobile devices ever since.
Earlier this month, BlackBerry reported its second-quarter financial results that showed the company’s revenue declined 21% year-over-year to $132 million U.S.
BlackBerry’s stock has declined 10% over the last 12 months to trade at $5.15 per share. The stock has fallen 60% in the past five years.