Since the days of Y2K, a new study of US Spinoffs by global advisors, The Edge Consulting Group and Deloitte, reveals that the US Technology sector has seen ex-parent companies perform significantly better than the Spinoff companies they have spun-off and separately listed on the market to investors.
Technology stocks have been in the limelight for the last year and have been drawing a lot of attention from shareholders. Even witnessing more corporate activism that has resulted in Spinoffs of big technology companies. Amongst the announced Tech Spinoffs above, all three companies were predicted by The Edge Group. Speaking to The Edge’s CEO, Jim Osman, “we believed that these three technology companies could primarily carve themselves into pieces to boost value; considering the fact that pure focused businesses lead to higher trading multiples creating shareholder value. Our analysis has identified over 20 tech companies globally that could follow.”