This in-depth equity research report provides a comprehensive analysis of Fortive Corporation’s spin-off of Ralliant Corporation. The report highlights the spin-off timeline, strategic rationale behind the transaction, segment deep dive, capital structure (parent & spin) as well as valuation. It includes clearly articulated thesis on which entity presents the better risk/reward profile. This report is suited for Institutional investors, family offices, corporate development teams, research analysts tracking spin-offs, hedge funds, and students.
Company Reports
Spinoff Analysis – Fortive and Ralliant Begin When-Issued Trading
$99.00
Publish Date: June 2025
Number of Report Pages: 12
Format: PDF
Report Summary
On June 25, 2025, Ralliant Corp, a spin-off of Fortive Corp (NYSE: FTV), commenced when-issued trading on the NYSE under the ticker ‘RAL WI’. The parent, Fortive Corp, also began when-issued trading under the ticker ‘FTV WI’.
Earlier on September 4, 2024, FTV announced plans to separate its Precision Technologies business into a separate publicly listed company, Ralliant Corp, via a tax-free spin-off transaction. The parent will retain the Intelligent Operating Solutions (IOS) and Advanced Healthcare Solutions (AHS) business segments, boasting a portfolio with 50% recurring revenue. We see the spin-off as a move to streamline operations and accelerate business growth, thereby unlocking value for shareholders. The spin-off will allow Fortive to focus on high-growth, high-margin businesses in software and connected devices. The Precision Technologies business is more capital-intensive and has stable but slower growth than the parent. The separation will allow Ralliant to allocate capital and resources more efficiently towards its needs, such as R&D for advanced instrumentation or acquisitions within its niche.
The record date for the distribution of Ralliant shares was June 16, 2025. Each FTV shareholder will receive 1 share of Ralliant for every 3 shares of FTV held as of the record date. The regular-way trading will begin on June 30, 2025. Ralliant will trade under the ticker ‘RAL’ and Fortive (ex Ralliant) will continue to trade under the ticker ‘FTV’. The spin-off of Ralliant will be effective on June 28. The transaction is intended to qualify as tax-free to Fortive shareholders.
Following the completion, Olumide Soroye, the current leader of Fortive’s intelligent operations division, will assume the position of CEO. Meanwhile, Tami Newcombe, the current overseer of the Precision Technologies and Advanced Health-Care units, will take charge of Ralliant Corp.
As part of the transaction, FTV (ex RAL) will receive $1.15 billion in dividend from Ralliant Corp. RAL will assume debt to pay the cash dividend to FTV and commence its journey as a standalone company with a leverage of 1.9x.
