By Chuck Martin, Internet of Things Keynote Speaker

GE plans to create a new, independent company focused on building an Internet of Things software portfolio.

The company will start with $1.2 billion in software revenue annually from its existing global customer base, according to a company announcement. GE is also selling its majority stake in ServiceMax, which provides field service management software, to Silver Lake, a private equity firm.

“GE has built a strong business with its industrial customers thanks to deep domain knowledge and software expertise,” stated GE chairman and CEO H. Lawrence Culp, Jr. “As an independently operated company, our digital business will be best positioned to advance our strategy to focus on our core verticals to deliver greater value for our customers and generate new value for shareholders.”

GE Digital CEO Bill Ruh is leaving the company “to pursue other opportunities,” according GE, which plans an internal and external search to find a CEO for the new independent company.

The new company is intended to be a GE wholly-owned, independently run business with a new brand and identity.