Borland announced overnight they have not sold its developer tools group, as previously anticipated, but have moved the tools group into a wholly-owned subsidiary.

The new operation will be known as CodeGear and be responsible for the development of Borland’s IDE business which includes Developer Studio, JBuilder, Turbo, and Interbase.

-After much consideration, we made the decision to establish CodeGear as a separate subsidiary,” said Tod Nielsen, Borland president and chief executive officer in a press release by the company. -We have always stated our intention to find the right buyer for this business – one who was committed to our developer community, who would continue innovation in our products and who would offer a sum that matched the value of the business.”

According to Nielsen Borland will be focused on the Application Lifecycle Management (ALM) market, while CodeGear will be focused on the software developer.

The new subsidiary will be led by Ben Smith who was appointed its chief executive officer. Locally, it is understood some of Borland Australia’s team will be moved into the new company. More details will follow as they come to hand.