A New Informix: Split Decision

Having cometo the conclusion that two is better than one, Informix Corp. is splitting intotwo operating companies.

The firstcompany, named Informix Software, will handle database management systems fordata warehousing, transaction processing, and e-business applications. It plansto improve on existing Informix databases, deliver a new unified databaseengine based on existing Informix databases, increase its partnerships withISVs, and develop its business services offerings related to its databases.

The second company-- which had not been named as of press time -- is expected to provide databaseand platform independent software solutions and e-business marketplaceinfrastructure. The e-business solutions company will focus on developingsoftware that supports most databases -- including those from Oracle Corp.,Microsoft Corp., Sybase, and Informix. The new company plans to provide anintegrated solution that combines Web publishing, e-commerce, and businessintelligence.

Initially,both companies will be subsidiaries owned by Informix Corp. (www.informix.com), although there is the intention ofeventually developing two independent, publicly traded companies. Informix isassessing how to divide the capital structure of the new enterprises soshareholders get the most value. Finalized plans are expected to be released bythe end of 2000.

Informixmade the decision to split into two units partially because of a slide in itsmarket position, but also so it could hone its product offerings and addressdifferent customer needs.