Retix Inc, Santa Monica, California plans to turn its Internetworking and Wireless Data business groups into two new wholly-owned subsidiaries. The company said it expects subsidiary employees will exchange their Retix options for separate option programs for each individual subsidiary. The move is the final stage of Retix’s corporate reorganization that began last year when Retix formed its Vertel business unit. Under the plan, each unit will issue subsidiary stock to the Retix holding company in exchange for the net assets of the former division. The holding company will provide shared services, strategic assistance and support. Each unit will have an independent board and its own engineering, marketing, sales and service organization, but shareholders in Retix will see no change in their holdings – presumably the employee options will convert into new Retix shares, but at rates that depend on the performance of each subsidiary.
