NCR and its Teradata data warehousing division are to separate into two publicly-traded companies in an attempt to improve their focus.

Teradata, which makes enterprise-grade data warehousing software, and NCR work in different markets and have different business models, said Bill Nuti, NCR's president and CEO. NCR's businesses include ATMs and retail POS technologies. The separation will allow for a sharper management focus and better employee incentive plans, Nuti said.

In 2005, Teradata had revenues of US$1.5 billion and an operating income of $309 million, NCR said.

The division must be approved by NCR's board of directors. Under the plan, holders of NCR common stock will receive Teradata stock, although the distribution ratio has not been determined yet, NCR said.

Once the separation is completed within the coming 6 to 9 months, Nuti will head up the new smaller NCR, while Mike Koehler, the current senior vice president of the Teradata division, will become president and CEO of Teradata.