Cobalt has advised IBM in Estonia, Latvia, and Lithuania on the reorganization and separation of its managed infrastructure services business into Kyndryl, which will operate as an independent company.
The process covered more than 65 jurisdictions worldwide, including the Baltic states. According to Cobalt, "IBM will retain 19.9% of the shares of Kyndryl common stock, with the intention of exchanging those shares for IBM debt during the 12-month period following the distribution, subject to market considerations."
According to a company press release, "each holder of IBM common stock will receive one share of Kyndryl common stock for every five shares of IBM common stock held on October 25, 2021."
"The separation of Kyndryl is one of many actions we are taking to sharpen our focus on hybrid cloud and AI, leverage a portfolio clearly focused on technology and consulting, and achieve our growth objectives," IBM Chairman and CEO Arvind Krishna said. "We look forward to our partnership with Kyndryl as it moves forward as an independent company."
Cobalt’s pan-Baltic team was led by Partner Guntars Zile and Senior Associate Diana Zepa and included Estonia-based Partners Martin Simovart and Karina Paatsi, Senior Associates Heleri Tammiste, Heili Haabu, and Karli Kutt, and Associate Johanna-Britt Haabu; Latvia-based Partners Sandija Novicka and Toms Sulmanis, Senior Associates Kristine Patmalniece and Ivo Maskalans, and Associate Gabriela Santare; and Lithuania-based Managing Partner Irmantas Norkus, Of Counsel Aurimas Ulevicius, Senior Associates Zygintas Voronavicius and Jovita Valatkaite, and Associate Agne Saliamone.
Editor's Note: After this article was published, Suciu Popa announced that it had advised IBM on the Romanian legal aspects of the deal. The firm's team included Managing Partner Miruna Suciu, Partners Dan Ciobanu and Mihai Caragui, and Associates Noemi Siman, Paul Manaila, and Andrei Nicolae.
Arzinger subsequently announced that it had advised IBM on Ukrainian law matters. The firm’s team included Managing Partner Timur Bondaryev, Counsel Alesya Pavlynska, Senior Associates Yana Babych, Tetyana Storozhuk, Tetyana Slabko, and Daryna Hrebeniuk, and Associates Kseniia Lotosh and Anton Rekun.