Eight months after announcing plans to sell its developer tools group, Borland Software has opted to spin off the group into a wholly owned subsidiary.

The new operation called CodeGear will manage Borland's IDE (Integrated Development Environment) products. In February Borland unveiled plans to divest its tools business, saying that move would allow it to focus on application lifecycle management software.

Tod Nielsen, Borland's president and CEO said in a statement that the new arrangement is in the best interest of the company's customers. He also said Borland had always wanted to find a buyer committed to the development community – someone who would continue to develop its products.

Despite interest in the tools group by several serious bidders, Borland ultimately decided to create two separate operations. That will allow it and CodeGear "to obtain the necessary focus and dedicated resources to serve two important, but distinct markets", Nielsen said.

As a subsidiary, CodeGear will have a separate brand, management team and sales and marketing strategy, Nielsen said in the statement.