Borland is has opted to spin off is developer tools group into a wholly-owned subsidiary, eight months after saying that it was up for sale.

The new operation called CodeGear will manage Borland's Integrated Development Environment (IDE) products. Borland had previously unveiled plans to divest its tools business, saying that move would instead allow it to focus on application lifecycle management software.

Tod Nielsen, Borland's president and CEO said that the new arrangement is in the best interest of the company's customers. He also said Borland had always wanted to find a buyer committed to the development community, someone would continue to develop its products.

Despite interest in the tools group by several serious bidders, Borland ultimately decided to create two separate operations. That will allow it and CodeGear to "obtain the necessary focus and dedicated resources to serve two important, but distinct markets."

As a subsidiary, CodeGear will have a separate brand, management team and sales and marketing strategy, Nielsen said.